Modern Lending Podcast | Josh Pitts

Come learn from the master himself, Josh Pitts! Why did he go LIVE everyday, how did SHRED Media get started, and where is social media going today!

Your snippet of this Episode of the Modern Lending Podcast

  • Another emphasis of you don’t need much equipment to start
  • Just create content, get in front of a camera
  • Just be authentic, and the attention will come
  • You cannot judge what your doing to the big names.

Episode Transcribe

Alec Hanson:What’s up, everybody? Welcome to the first-ever, live-streaming Modern Lending podcast episode.

We’ve all had to pivot. Times are crazy, and man, going live on our podcast now is something that we have to do because I can’t bring anybody into this cool studio anymore because God forbid they cough on me. So I think it’s so fitting right now that the first guest that we ever bring on, on the live Modern Lending podcast, is the one and only, Josh Pitts.Now, before we bring him on, I got to say a couple things about this guy. If you don’t know who Josh Pitts is and Shred Media, you’re not paying attention on the internets. This guy has been a massive inspiration for so many people, including me, to just start filming.I got a small story. I was watching this guy go live every day, and I’m like, “Who is this guy? Why is he going live every day?” I’m watching his brand build. I’m watching his place of influence in the industry build. I’m like, “Man.” I got a little jealous. I’m like, “Dude, this guy’s killing it out there.” I had this aha moment of like, wait, I can do it too. I could do this too. And Josh, I owe this all to you. So as we bring him on here, and let’s roll the reel. Let’s get Josh Pitts in the studio. We’re here! We did it!Josh Pitts:What up!Alec Hanson:[inaudible 00:01:47]. Man, look first of all, Josh, I wish you were here. I wish I could give you a hug, a fist bump, and we could just do this together, but thank you man. Thank you for coming on the first live episode of the Modern Lending podcast. I want to give you a chance to kind of talk about a lot of things today, man, a lot of things. The first is I just want to say, thanks dude. Seriously, thank you for having the boldness and the foresight to put yourself out in a position of vulnerability and to pull a whole industry kind of behind you. I’ve just watched this happen, and I’ve been so impressed. So I want to start with what’s your background in the industry? I know you do loans, but why did you get in front of the camera? What pulled you into this new world?Josh Pitts:First and foremost dude, I am humbled and honored to be hanging out with you, Alec. Dude, I’ve been watching what you’re doing, and just before we got on, I was telling you I’m so proud of you for your hundred video challenge that you did. I mean, look from where you started to where you are now. It’s absolutely brilliant. So kudos to you, kudos to loanDepot, everything that you’re doing. I got my LD hat on today. I didn’t even mean to match this purple going on. This is awesome. This is freaking money. I mean, I’m really excited to be doing this because you know this is something I absolutely love doing, I have a passion for, I love putting out great content.So I got my start in the industry, everyone knows I’m an originator at heart. I’ve been in this industry for 10 years, absolutely love it. I’ll always stay in the mortgage industry. We’re definitely making some pivoting right now as Shred continues to grow, as our team continues to grow, as we’re seeing new opportunity. Yeah, so I started as actually a junior LO in the industry, worked my way up, was an originator for years and years, owned my own mortgage brokerage. Then a few years ago I just started. I was traveling, going to these different conferences, and I’m just like, “I want to do something different. I want to start putting out content.”It’s funny that we said that you and I were talking about this earlier, but I’ve watched a lot of other industries. I’ve watched the gaming industry. I’ve watched other sales and marketing, just different industries. I started seeing a lot of people put out content. Gary Vaynerchuk was one of the first guys that I’m like, “God, this guy’s putting out a ton of content.” I’m like, I wonder if I can do the same thing.There was people in the mortgage industry. You got guys like Ryan Hills who were putting out content with the RE source. You have people that were putting it out there, but nobody was doing it on a regular basis. So I said, “Well, what if you could put out a daily show? What if you actually put out a show and had a new guest on every single day?” Little did I know, Alec, how much work that would be. To get a new guest every single day and put out good content. Blew my mind, so difficult. I learned so much from it, but it was a ton of fun. So we started with a daily LO life, just talking with originators, talking with great people in the industry.Alec Hanson:Yeah. You say that like you just like, we started with the daily LO, but like okay, break down your kit. Look, I know people that are checking us out on LinkedIn and Facebook and YouTube right now are seeing kind of overlays, nice mics, and headphones, and graphics, and music. You were in the dirt with a Nokia phone, what was your kit when you started doing this?Josh Pitts:Dude, my kit was this. It wasn’t even an iPhone. It was literally old iPhone. It was an iPhone 7, I believe.Alec Hanson:Yeah.Josh Pitts:just started with an iPhone, do we swear on this show? Is this PG?Alec Hanson:[inaudible 00:05:17].Josh Pitts:It was a shit show, man. It was so bad. It’s funny because I go back and watch some of the videos, even some of the guests trying to get guests on Facebook. I was one of the first guys. I remember one of our first videos when we were able to figure out how to do a dual guest on an iPhone where you could barely see them in the corner, but they were having issues and I was having issues and I couldn’t hear them and it was terrible quality, but it didn’t matter. People just started showing up watching it and I’m just like, “Okay, I’m just going to keep doing it.” Literally my first about a hundred episodes were all done for my iPhone. I didn’t have a mic. I didn’t have a good camera. It was just done from the iPhone because that’s what I had. I didn’t know any better. I’m just like, I don’t know if people are going to watch this. I’m going to start putting out content.I did. Then of course we added a few things. Now we’ve got mics, we’ve got cameras, we’ve got different things, but it all started with just like, “Hey, I want to put out great content and I’m literally just going to start.” That’s what I started with.Alec Hanson:That’s one of the themes dude that I hope everybody hears on this. For people that are unfamiliar with Shred Media, I want you to break down kind of what that is and what the place is in the industry and how you saw that when you would just go on the LO life back in the day. You just got to start. You just got to start. Turn the camera on and start. Man, there’s nothing truer than that because now fast forward look at Shred Media today.You’re trademarked which is epic. What did you see for Shred Media in the industry? Did you have the vision for what it would be in the beginning? Did it grow as you’re like, “Wow, this has taken on a life of its own?” Give everybody the story there.Josh Pitts:Yeah. So I started Shred Media just over a year ago beginning of 2019. I was kind of looking to pivot from the daily LO life. We were doing great things, but we really didn’t have our place. And frankly to be honest, we weren’t monetizing. I was still just originating to this day. I still people ask all the time, like, “Wait a minute, do you still originate?” No, I do not originate. I still have my license. I have an active license. I still get a ton of referrals from this. People ask all the time, “You still get referrals?” All the time. It’s amazing. Like just putting out content, like how many referrals I get and we pass those along to our great team. And they’re the ones in the trenches who are doing it.But about a year ago, as I was doing the daily LO life, I was kind of looking for a way to continue to put out more content. I read, this is what I enjoy. I love putting out content. I love streaming. So I started looking around and I’m like, “Well, I wonder if we did like some type of media agency or some type of media company.” But I didn’t know, like what, like, I didn’t know if you could even make money doing it. I didn’t know if we could make money as an organization. I just knew how to take care of my family. And so what we did is we were sitting around and playing with names and shred, being a snowboarder, coming from Utah.Alec Hanson:Yeah, hold on. [crosstalk 00:08:03] like, “Hey, what’s this guy in Utah using my surfing term. Like my Cali term bro.” You totally took it. And then I got it with this snowboard. I got it later. But at the beginning I was like, “Hey bro you’re taking Cali’s term here. Careful.? But now, respect.Josh Pitts:Dude. It’s funny. So we love surfing here in Utah, we have our boat and we love to shred and we had kind of played with a name and I have a terrible habit of buying URLs and domains. I have hundreds of URLs and domains, like really bad.Alec Hanson:How many do you own. How many URLs do you own?Josh Pitts:Legit, probably just over 200, I believe is what we have now.Alec Hanson:Yes, you for sure have a problem.Josh Pitts:It’s so bad. I’ll think of a name and I’m like, “I want that. I’m going to go buy it.” And my wife, we’re literally looking at like our GoDaddy and some of our accounts. And she’s like, “What in the world are you ever going to use this domain?” And I’m like, “Maybe.” I’m a hoarder when it comes to URLs. It’s really bad. But anyway, so shred, I was kind of playing with names and I’m like Shred: Show up. Hustle. Repeat. Every. Day. And it’s literally funny that we’re saying this because we were having this argument last night, not argument, but we were laughing because one of our friends was like, “Where did you come up with shred?”And I’m like, “Oh, well we were just sitting around and I came up with it.” My wife’s like, “Wait a minute. I was part of this. Give me some credit.” My wife’s like, “Hey, I was there. Like I was throwing it.”I’m like, “Okay. So I got to give my wife’s from credit too because she helped with, Show up. Hustle. Repeat. Every. Day. And next thing I know, Shred Media was born and we just started putting out content. And literally the next thing I know, we have people reaching out to us just because we’re out there. We’re just putting out content.Companies are reaching out to us saying, “Hey, can you help us with this? Can you help us with marketing? Can you help us with this and this and this?”Alec Hanson:You’re a modern marketing agency almost because you’re in the space where everyone is and leading the way.Josh Pitts:Yeah. So we have companies reaching out to us saying, “Hey, can you do marketing? Can you do PR?” And I didn’t want to go down that road. So I had literally just read the book, is it behind me? I don’t know where it is. Play Bigger. Have you ever read the book Play Bigger?Alec Hanson:Oh no. I heard of it. I haven’t read it yet. Now it’s on my list.Josh Pitts:Awesome book. Absolutely read it guys. If you’re listening to this, I read the book, Play Bigger and basically it talks about becoming a category king or creating a category. And I’m like, again, I didn’t want to be a PR firm. I didn’t want to be a marketing agency. I’d seen those. And the marketing agencies, no offense, but a lot of marketing agencies within the mortgage industry were just, they didn’t get it. They were trying to come in and they didn’t see what I did.Alec Hanson:I agree. I totally agree.Josh Pitts:And so I’m like I want to do something different. So I came up, I coined the phrase attention impact agency and I’m like, people need attention. That’s what they want. They’re craving attention. But that attention has to have impact with the audience. So we became an attention impact agency. And when I put that out there, it literally, the phone just started ringing like, “Hey, we heard you’re an attention impact agency. We’re not even sure what you do, but can you help us?”And I’m like, “Sure, we can figure it out.” Next thing I know we have companies reaching out to us to like, some of our partners are, I mean, UWM, Caliber, Home Point Financial.Big companies are reaching out to us saying, “Hey, we need your help. Can you help us?” And I was honored. I was humbled. And then we started putting together strategies and plans and then started working with them, putting out great content for them. And that’s what we do. That’s what, as an attention impact agency, we were helping companies do.And now I’m excited like you and I were talking about pivoting is we’ve had so many people across the industry, mortgage, originators LOs, saying, “Josh you work with these big companies. Can you work with us individuals?” So we’ve talked about it a little bit, but we’re releasing the Shred Squad and it’s designed for it. I’m still an originator at heart Alec. I always will be. I love helping the people who are in the trenches. We have a lot of people asking like, “Can you help me put out good content? Can you guide me through that? What does that look like?” Just like you and I are talking about right now, where do you start? How do you build? When do you start building? And just really the strategy and the tactics. I’m all about trying something. And if it doesn’t work, tweaking it a little bit and just keep putting out content.So the squad, the Shred Squad is we’re getting ready to release it. On a completely different platform than this industry has ever seen. It’s totally, there’s nothing that has ever been done in the industry like this so we’re excited. [crosstalk 00:12:10].Alec Hanson:Let’s just break down what it’s going to be. Is this something for LOs if they can independently sign into, register, be a part of?Josh Pitts:Yep, 100%.Alec Hanson:And when they get into the squad, what happens? What’s their experience or what are you providing?Josh Pitts:So when you get into the squad, I like that squad mentality. It’s, hey, when you join a squad and going back to military, a squad is your family. It’s the people that you can expect and rely on. They’ve got your back. They’re going to be protecting you. If you’re part of the squad, there’s no backbiting, there’s no fighting. You call each other out when you need to call each other out and you’re going to go on a mission. When your squad is the people you’re about to run into the line of fire with. So you know that they are there for you no matter what.Especially when shit gets real, when shit gets tough, they’re the ones behind you saying, “Alec, you got this dude. Hey, let’s work through this together. Let’s have a conversation.” So that’s where the Shred Squad is all about. Plus, we teach you how to do it. We teach you how to put out great content, how to create, where to start. What does your niche look like? How do you start to put out content around that niche? What equipment are you starting with? StreamYard is a great, you mean you both use StreamYard, we use OBS, but most people don’t start there. Most people just start with their phone. But with technology-Alec Hanson:Yeah, and they just hit the go live button.Josh Pitts:Yeah. And a lot of people I’ve been getting so many questions out and you’ve probably seen this. Facebook just went through a huge update on their Facebook Live.Alec Hanson:Yes, they did.Josh Pitts:My inbox has been flooded like, “Hey Josh, I can’t do live anymore.” And if you didn’t know, you actually have to be approved for doing guests on Facebook Live depending on your page. So there’s a lot of questions out there and that’s what we want. We want to guide people through that process. We want to help you as an individual, get that attention and have impact with your audience. So we created a squad around it. We created a community specifically designed on helping you grow your brand, get more attention, make sure that attention has impact with your audience. It’s going to be a ton of fun, man. Super excited.Alec Hanson:First of all, congratulations on pivoting.Josh Pitts:Thanks man.Alec Hanson:And I’d love to break this down for our salespeople out there because we’re all having to pivot. I mean, I’m doing my podcast live now as opposed to in the studio, fist bumping. You’re pivoting to a squad that can directly help originators. And we’ve got originators who are working from home, sheltering in place. Amazon is sold out of the Logitech cameras. You can’t get them.Josh Pitts:Some crazy…Alec Hanson:And it’s wild. People were like, “I ordered my camera, but I don’t know when I’m going on?” And everyone’s learning the new normal. And I think we have fundamentally as an industry changed because of this. And not just our industry, I think our country is. But man, I mean, talk about a sales guy or girl who is used to going out and going to networking events, hosting lunch and learns, hosting first-time home buyer seminars, meeting with realtors, going out to open houses. And now, it’s like, “What do I do?”And everyone’s stuck staring at social media and staring at their phones and hiding from their kids in the bathroom. I know maybe not you, but there’s some people who are hiding in the restroom with their phones, locking the door. And so, what encouragement and what kind of advice would you give, Josh, for our LOs out there who are stuck at home? What would you tell them to do?Josh Pitts:The biggest thing I would tell them, because you and I were talking about this, Alec, is you have to decide if you actually want to put out content. And I’m all about, you have to get comfortable with being uncomfortable. You have to… Even doing this, you and I, we’ve done plenty of these, but it’s not something that we’ll…I don’t look at myself on camera and I’m like, “Man, I look good. This is awesome. I totally kind of like… ” It’s still uncomfortable. Every time I go on a live or I get invited to do something like this, there’s still that sense of a little bit of uncomfort and you have to be willing to push yourself outside those limits a little bit. But at the same time, if you do a couple of videos and it is absolutely you don’t enjoy it, you absolutely-Alec Hanson:Hey Josh, check your audio cord. I think it’s… I’m getting a little bit of feedback on you. I’m double checking that. I think it’s on your side.Josh Pitts:Hold up.Alec Hanson:Hold up. You sound like you’re mixing into robotic. It’s epic. Hey, if you’re listening right now, let me know. Are you guys hearing the same audio feedback I am? This is the benefit of live, because I’m texting my guy who’s helping me put this show on right now, and I’m like, “Is it our audio or his audio?” So, drop a quick comment in if you’re seeing it too, or if it’s just on my side, and then we can keep rolling.Josh Pitts:So, I just got back from… because I have my team on it. They say it sounds good. Let’s see.Alec Hanson:Let’s rock and roll. And I got the same feedback [inaudible 00:16:42].Josh Pitts:Okay. Cool.Alec Hanson:All right. Then back to you.Josh Pitts:So, making sure I… My team just texted me. She’s like, “No feedback. You’re good.” And I’m like, “Okay, sweet, as long as we sound good.” Sometimes it’s funny because as a host… This is a perfect example, Alec. And I’m glad this even happened, because sometimes as a host, sometimes you have really bad audio and you’re like, “My gosh! I’m freaking out. We’re live. People are going to be judging me.”We’re still doing this, ladies and gentleman. This isn’t going to stop us. We’re going to figure it out. We get to adjust on the fly. Some people, this would totally kill them and they’d lose track of their… Now I can hear what you’re talking about, though. Funny enough, I can hear that feedback that you’re talking about.Alec Hanson:Really?Josh Pitts:So, that’s really interesting that I can hear it now. But again, this is a great… Ladies and gentlemen, Alec and I have done how many of these? We have tech issues. It still happens. You just work through it. Most of you probably can’t even hear this feedback that Alec and I can. Totally okay. Don’t worry about it. Just work through it.So, I would tell everybody, going back to what I was saying, is if you put out a few videos and it’s totally not for you, that’s okay. I had this guy send me this message the other day saying, “Josh, you’ve inspired me. I tried putting out videos, but it’s just not for me. Can you give me any inspiration?” And I asked him, I’m like, “Well, how many videos have you put out?” And he said, “Well, I put out four videos.” First and foremost, four videos?Alec Hanson:Not going to cut through it.Josh Pitts:You’ve got to put out more than that.Alec Hanson:Not going to cut.Josh Pitts:You’ve got to… And I even told him, I said, “Well, is it more that you don’t like doing it, or is it hard for you because you’re putting out videos and you’re seeing that maybe not a ton of people are watching?” And he said, “That’s it, Josh? I want more people to watch what I’m doing.” And I said, “Dude, it takes- “Alec Hanson:Okay. Let me add to that, dude, because you’re so right. So, I’ll be super transparent mode right now. Right now, on LinkedIn, there’s around 10 people watching, on YouTube and Facebook, there’s 22 eyes on the screen right now. And somebody might say, “Well, you’re talking to like 35 people right now, that you’re talking to. And that’s not a huge reach.”And I’m like, “You got to understand, when this content continues to roll through the world, I routinely get thousands and thousands of views on this stuff over time.” And it’s not about this moment, this moment that you and I are having this conversation. This conversation will exist in perpetuity for people to continue to engage with. We’re going to re-release the audio of this on the podcast later. So, somebody who’s not watching live and they’ve subscribed to the podcast will get it.People don’t understand. I coached remote LOs yesterday. I’m like, “Film the video live as if it’s just a pre-recorded video, as if it’s a video you’re going to post later and watch what happens.” So, you are a hundred percent right, dude. That is the perspective I think everyone needs to have. And look, we just jumped up to like 40 views. So, you got to have the long-term perspective, man. You’re nailing it.Josh Pitts:Well, and that’s just the thing, Alec, is like everybody watching this right now… And it’s funny because some people will watch some people in our industry. There’s people putting out content. You look at guys like Barry Habib or Dave Savage or Anthony Casa, and people are like, “Holy cow! They have hundreds of people watching them live. Congratulations! They’ve… ” You know what? They’ve done a great job, but you can’t compare yourself to them. They started somewhere and they built up. They have a very loyal following.And that’s what you have to do, is you have to start somewhere and build that loyal following. I’m the same way as you, Alec. Sometimes I’ll jump on, and sometimes I’ll have 10 people watching me live across all my channels. And I’m totally okay with that. Sometimes I’ll jump on and off a couple of hundred watching me live across the channels.So, you cannot judge what you’re doing just by that, especially when you’re getting started. I put out content because I love putting out content. I don’t care if 10 people watch it. I don’t care of a thousand people are watching it. I love putting out content. I’m putting out valuable content to try to…Because even if only 10 people watch it, but two of those people you inspired, or as an originator, if two of those people who watch are like, “My gosh! I connect with Alec. This guy is brilliant. I’m going to follow his content religiously.” There you go. And next time they come around to buying a home or refinancing, those are two more clients that you didn’t have before.We have to stop over-analyzing our numbers, especially you were just getting started. You can’t compare yourself to other people. You can’t compare yourself to myself or even Alec, because we’ve been doing this. Alec’s put out hundreds of videos. I’ve put out hundreds of videos. And so, you’ve got to give yourself time to grow.Most people, there’s a huge opportunity right now to be doing this stuff. And I tell people now is a better time than ever. And if you have the mentality of, “Well, there are so many people doing it right now. My gosh! Josh, I see originators in this group putting out content. There’s no more room.” Shut the hell up and do it. Please stop saying that. Stop making excuses. If you look at the world of gaming, ladies and gentlemen, there are tens of thousands of gamers putting out content. And there are still people jumping into putting out new content. Like you just got to start putting out content.Alec Hanson:We got to talk about that. We’ve got to talk about that as an analogy into our world. So, everyone that doesn’t know what Twitch is hasn’t been paying attention. There are people live streaming their own game play video games. I mean, some people don’t know this, so I’m just going to… They’re on social media, they’re on Twitch, they’re reposting to YouTube, et cetera. And they are just screen casting and live streaming themselves playing a video game. Josh, do you know how much that industry is worth right now?Josh Pitts:Oh, billions, man. Billions.Alec Hanson:Billions of dollars of kids and some adults playing video games. And we’re sitting over here afraid to put a message out to our community and our homeowners and our potential home buyers about how to navigate this crazy time. We’re sitting back in fear. You nailed it, dude. Fear is what’s crippling the best of the best to get out in front of the camera. Fear of candidly bullshit, fear of their own insecurities, how they look.So, I love Gary V. He’s been a major inspiration to a lot of people and he’s like, “Do all these stuff.” And no one’s doing it and he’s like, “oh, you’re afraid I get it.’ And now he’s trying to unpack that as a message. And I think that’s holding so many great people back because they have such amazing stories to tell and they’re afraid. And so how did you deal with that? How did you conquer fear in that regard?Josh Pitts:Dude, continuing showing up, hustling and repeating every day. I guess, Shred. Trust me because a lot of people ask, “Well Josh, you’re super confident, you’re enthusiastic.” I battle my demons every single day to like all the rest of you. I overanalyze my number. Sometimes I overanalyze a video. I’ll put out a piece of content that I think is going to get thousands of views and it will only get 20 views. Trust me ladies and gentlemen, I know what you’re going through. And that’s why I wanted to build a squad because building a brand, putting out content, is hard, it’s frustrating, it can be depressing at times.So, you have to have that squad mentality of like, “Hey Alec’s having a bad day, I’m going to jump in the squad because I know somebody there and they can pick me up. They can say, ‘Hey, you know it’s all right, you get through this.'” so I mean, you have to have that mentality, you really do. And again, for all those who are listening, I apologize now because I can’t hear the audio and I have had a few people text me like, “Hey, we are having audio issues.” So, I apologize. I’m not sure. I just tried to reset my mic on this side, but we’re going to push through it. Again, we push through it, we adapt, we overcome, we improvise. But what about [crosstalk 00:24:06]. Go ahead.Alec Hanson:Let me share this on top of Josh’s thing. Yeah. I want to get to Omar’s question in a second so let’s pull it off, because it’s a great question into tactics. I think sometimes too, and Omar this is not necessarily reflected at you, but I think sometimes people get afraid like, “If I don’t have the nice mic, if I don’t have the right camera or the right lighting…” And they use that as an excuse not to contribute and post content. So, that’s probably not you Omar, but for those that is, you got to get away from that.Josh did all this stuff on an iPhone, don’t worry about that. But I do want to unpack the fact that you’re going to have roadblocks, you’re going to have things that come up that stop you. You’re not going to have time. I mean, these excuses are rampant. I mean, even right now, right? Like my wife, may God bless her, she’s homeschooling a six and an eight-year-old, she didn’t sign up to be a homeschooler. We can’t go in the office, we can’t go anywhere, I’m locked in my garage. It’s a new world and there’s lots of excuses on why or what could hold you back and the more you lean into that, just recognizing you’re going to have to overcome it.And here’s the thing I want to say, Josh, this is why I think I connected with you on a spiritual level early on because, the fact that Show Up has been a theme for… It’s obviously part of SHRED. In 2000 and something, 10, 12, I can’t even remember. I ran a campaign for my salespeople called Be There and it was just literally, you got points to go to open houses, go to… We did points just to show up, literally just to be there. And then when I launched our Modern Lending Playbook, my whole campaign was show up and evolve. Just show up, just be where the people are.And that’s where all the growth is, that’s where the opportunity is, it’s just you being present and being willing to step forward. And I think I just connected with you on that because that’s been a part of your theme and that’s been part of my theme and I’ve been like, “Dude, we have a shared bond and that just get out and get where the people are.” So, Hey Omar, let’s put the question up there because it’s a really good one. And we’ve got a few minutes and we should talk about it because-Josh Pitts:So, real quick, going back to Show Up, I want to talk-Alec Hanson:Yeah. Okay. Let’s do.Josh Pitts:… ladies and gentlemen if you show up, you’re ahead of 95% of the industry. Truly, just showing up.Alec Hanson:I know, it’s the truth.Josh Pitts:All right. Throw that question back up there, because that’s a good question.Alec Hanson:Actually no, I got a story now. Hold on.Josh Pitts:Okay, go.Alec Hanson:So, I’m 23 years old and I was told by my mentor at the time to just go out and meet agents at open houses and at broker previews. Just go out, just meet them, say hi, shake your hands, drop the business card off, just go out and say hi. And I was like, “Okay, whatever you say.” And this is 2003 when everyone was refinancing the world and I’m just like, “I was told to go hang out with realtor, so I went out.” I remember this realtor who is still kicking serious ass in Orange County. This guy named Don Abrams runs his own brokerage, I owe so much to this man.He’s a major agent, does tons of business and on Thursday he had a broker preview open house. So I walk in, in my suit and he’s on the Bible Island he’s like, “Dude, you can’t wear a suit here. What are you doing?” And I’m 23, scared to death. And I’m like, “Don, I just want to introduce myself, I’m Alec.” He’s like, “Great.” I leave. Next day he has another listing, Friday, so I go to that one, “Hey Don.” “Alec?” Like, “Yeah.” Saturday, another listing I show up, Sunday. So, four days in a row, he’s at an open house. And I try to be sensitive on open house days because there’s people and customers.But I walk in and I’m like, “Don.” And he looks me dead in the face and he’s like, “Alec, are you going to come to every single one of my open houses?” And I’m terrified. I have massive Call Reluctance, fear of rejection, all my insecurities are right here. And he’s like, “Are you going to come to every single one?” And I’m like, “Oh God, this is it. This is the moment.” And I squeak out like, “Yeah. Is that okay?” And he actually he laughed, he gave me grace and he said, “It took my last loan officer two years to earn my business, keeps showing up.”Took me six months. Six months of showing up every day. On a weekend, one day he calls me and he goes, “Hey, I’m sitting with the Johnson’s,” I can’t remember who, “they want to buy one of my listings. Can you do a prequel right now on a Saturday?” And I was like, “I’ve been waiting for this moment, Don, tap, tap I’m in, let’s rock.” And dude showing up it’s the game. That’s the game. Okay.Josh Pitts:[inaudible 00:28:23].Alec Hanson:You want to talk hardware for a sec for Omar?Josh Pitts:Yeah, we can totally jump on to that question. That’s a good question.Alec Hanson:All right. So he asks, “On the tech front, could you give us some good recommendations on hardware? Mics, cams? We know the limited supply, any other places to look besides Amazon and eBay?” I got some answers for this, Josh, why don’t you share your perspective?Josh Pitts:Yeah, when it comes to, if you’re just getting, Omar, going back to what I was talking about earlier, if you really are like, “Hey, I want to put out good content, want to put out quality content,” then again, I want everybody to know, you don’t have to spend money. You can start, I started with my iPhone. I, to this day actually, still use my iPhone for some of my videos, because it’s great quality. But if you’re going to get a camera, it is really hard to find a camera on, especially a decently priced camera, on Amazon. Like Logitech, some dude, I don’t know if you heard this, Alec, but some dude out of China bought all the Logitech cameras. He saw this trend, that’s where they’re all at-Alec Hanson:No, no.Josh Pitts:… this dude … legit. Yeah, legit. We did a bunch of research. This guy out of China bought a ton of them, and now he’s basically selling them for twice as much. You can find them out there.Alec Hanson:That’s messed up.Josh Pitts:And this guy’s one of them … I’ll post the guy’s name, because I’ve been trying to get people not to buy from this guy because it’s so messed up that he did it. Anyway, side story. So, starting with a Logitech camera, there’s a couple of great little cameras out there. My camera right now, I’m running a Canon EOS 90D. It’s a 4K camera, it’s way above what you will ever need, but we do a lot of content, so that’s what we use, and our setup is not easy. I have an HDMI cable running into an El Gato capture card, so it gets complicated. But simply, go buy a webcam. Most laptops have a great webcam. Here’s the thing too, is Facebook just barely started allowing you to even do 1080p video. For the longest time, they would only allow me 720-Alec Hanson:And yet [crosstalk 00:30:04].Josh Pitts:… and most cameras only run 720 anyway. Alec Hanson:Yup.Josh Pitts:Yeah, so you don’t have to worry about it. 720 is still great quality. I don’t worry about the quality … people will comment, and again, as you continue to put out more and more content, then yes, you probably need to upgrade it, but again, for most LOs, most originators, $100 camera, $50 camera … I think the Logitech, what is it, the C920 or whatever it is?Alec Hanson:Yeah, it’s like $60.Josh Pitts:Or the L920? Whatever they … yeah, it’s $60, and it’s a fantastic camera. I promise they’re going to come back on the market. We’ve actually had conversations with Logitech. We have a very good relationship with them, so their cameras are going to be coming back. Stay tuned for it.And then my favorite mic to buy is the Blue Yeti Microphone, it’s $149.Alec Hanson:USB connection.Josh Pitts:USB connected. It is the best microphone to start with. Bar none. You can adjust the sound quality, like you mentioned Alec, it’s a USB mic, so if you’re starting with a … in my opinion, audio is way more important than video, especially when you’re starting. That was the one mistake I wish I would’ve … we started with a Blue Yeti, I have one over here behind me. Start with good sound quality, because is, I think, in my opinion, everybody should have a podcast, and both Alec and I do is every video that I do, I strip the audio, and I put it into a podcast for him too, so people, you can put it on iTunes, you can put it on, I use Buzzsprout to basically put it out to all the different podcasting. So audio is way more important than video. I always, people are always like, “No, video, video, video.” No way. Audio is way more important. People listen to audio. Again, if you’re at the gym … I know none of us go to the gym right now, but when we all go back to the gyms? I listen to podcasts when I’m working out. You don’t really watch YouTube when you’re working out. You just listen to a podcast. So if you’re starting to put out content, audio is big. Strip that audio out and turn it into a podcast.Alec Hanson:Even people have their YouTube or something up on a sub, on a tab while they’re doing emails and working, and they’re not even looking at the video, they’re just listening to the audio.Josh Pitts:100%.Alec Hanson:So, you’re nailing it. Audio is crucial in this day and age, and you can’t skimp on the price for a good mic. And I second the Yeti, I use it at home, I use it everywhere. They’re incredibly good, and they’re not that expensive, candidly. And they don’t require you to have technical skills. You just plug it in. You’re rocking.Omar, the other question on best places to look. I’m scanning Target, Walmart, BH Photo, all those kind of retailers online that we used to go to Amazon for. I think everyone’s finding, by the way, this is so funny. Now that people are so pissed that Amazon is like, “Takes two weeks to deliver now,” they’re like, “Oh. I used to have it Prime and get it in the hour, and now they’re having to send ventilators to save humans and I’m mad, I can’t get it tomorrow.” But go to Target. Get it tomorrow from Target. It’s one of those things that I just find so freaking hysterical. Okay, Josh-Josh Pitts:This is the mentality of our industry though. It’s so bad. Amazon shot themselves in the foot because they created this expectation of two day, you can get anything in two days, and now the world is mad because it took six days. And that’s still so fast. Guys, stop freaking out. It’s just baffling to me.Alec Hanson:Yup, and so here’s my question. You mentioned podcasting, and you said everyone should have a podcast. Which of course, immediately peoples’ heads fall off, and they’re like, “I could never do it, it’s too much,” and that. But I want you to share why, I want you to share where to go if I, how did you learn how to do a podcast? And really, I’m a local LO. I do 30 million a year, which is awesome. You’re doing God’s work right now. But you’re telling me to have a podcast? Why? I want your insight, I want you to share it.Josh Pitts:Absolutely. So, first and foremost if you’re starting a podcast, I’ve watched trends. Again, I have watched so many trends outside of our industry in marketing, in sales, I mean just in so … in gaming. I’ve just watched so many other trends happen, and if you have watched the trends, and again, don’t get mad at the messenger, I’m just … over in China, what they’ve done with podcasts is mind boggling. They have hundreds of millions of podcasts. And we’re just starting to scratch the surface of a couple million podcasts. People think, they’re like, “Well oh, everybody’s got a podcast these days.” Great, man, as a matter of fact, they don’t.If you look at Buzzsprout, if you look at a lot of the iTunes, yes, they’re popping up. But again, there’s some targeting that you can do, and you can utilize your podcast locally, in your local community, that people will listen to it. And it is so cheap to have a podcast right now. It’s basically free. You get an audio, you can even use your iPhone. You can literally record an episode on your iPhone and you can put it out on a podcast. But here’s why. I started a podcast because I saw the trend, and now our podcast has grown exponentially over the last few months, just because people are listening. That’s, you hear great guys like Gary Vaynerchuk talking about that. And like you said, I’ll be sitting here doing some work and I’ll have YouTube up in the background and I’ll be listening to audio. We’re a very audio driven society. We listen, I mean look at Alexa. You can’t see what’s going on on Alexa. If you use Alexa, or if you use Google Home, or whatever you use, it’s all audio. So-Alec Hanson:Yeah, keep listening.Josh Pitts:… Yeah, people are listening right now. Everybody’s listening. CIA is listening to us right now. That’s a whole nother topic.Alec Hanson:Oh, man. This is a good podcast.Josh Pitts:But literally, people are listening to you. And here’s the other thing too, to be honest, Alec, is people are more comfortable doing audio than they are video, which I don’t know why. I don’t get it, but some people are so uncomfortable on camera. Let kind of pop your little bubble right now, because believe it or not, you look the exact same on camera as you do in real life. So if you actually meet people in real life, holy shit, people are like, “You look the same!” It baffles me when I have originators say, “Well, I feel uncomfortable on video.” I’m like, “Well, do you meet clients in person?” They’re like, “Yeah.” Then I’m like, “I’m totally baffled because you look exactly the same on camera as you do in person, so I’m missing something here.” So if you don’t feel comfortable-Alec Hanson:I always say the same thing. Especially, do you bring a stunt double in for your face-to-face customer applications? A stunt person? No.Josh Pitts:Yeah. It’s like, “Hey guys, bring in the double. We’re going to set up a quote right now. We’re going to bring in the double. Hold on just a sec, ladies and gentlemen. We’re going to switch out.” No, you do it on video. So, anyway. Sorry, we digressed. Audio, people listen to it. Like I said, it’s so easy to get good audio and good quality audio right now and putting it on a podcast. So part of the squad, we actually walk you through how to set up a podcast, where to start. You can use Libsyn, you can use Buzzsprout. I use Buzzsprout because it’s so simple. Like anything, there’s a learning curve, but again, we can help you with it. I know Alec, this is something that you’ve done. But why?I want to get tactical. Because some of you are probably asking, “Why would I do a podcast?” You can connect with people in your local community. Imagine this just real quick. So let’s say you’ve got a real estate agent because that’s everybody. We’re so one track-minded and we think about real estate agents. Let’s say Alec’s a real estate agent and he’s having an open house. What if you went to Alec and said, “Hey, let’s do a podcast about your open house? Let’s talk about not only the open house that you’re having, but let’s talk about the local restaurants. Oh my gosh, let’s bring one of the local restaurant owners in and let’s have him on the podcast as well talking about during the open house they’re offering 25% off to come and actually do a quick open house for that restaurant as well.”So now people are going to come to the open house. They can go a block down the road to the local bakery, they’re on the podcast as well. That’s a win-win. You have to look at things like opportunities like that. That’s tactical shit right there. I just gave you an idea that you can implement that now you’re valuable to that real estate agent because I guarantee they haven’t done that with any other originator, but now you’re putting them out there. You just partnered them with another local business where now they can collaborate together. Again, you’re bringing like-minded people together. That’s all on a freaking podcast. You just having-Alec Hanson:Here’s the thing that you’re echoing or that I want to echo; your reach goes up. You interview and talk to those people, they share with their community. You’re doubling and tripling and exponentially pushing your reach out for free.Josh Pitts:100%.Alec Hanson:For free.Josh Pitts:For free.Alec Hanson:For free.Josh Pitts:Dude, it’s crazy to me. The fact that people are like, “Well, what do I talk about on a podcast?” Here’s the thing, you and I have been going for almost 40 minutes now. And I tell people “When you first start, don’t try to go 40 minutes. Don’t even try to go 30 minutes.” My live show, Daily LO Life, I shot for 15 minutes. Again, us as humans, we have short attention spans first of all. Number two, if you’re trying to put out long-form content, you have to work your way up to it. Again, both you and I, when you were doing your hundred day video challenge, I think you were to two minute videos, right?Alec Hanson:Yep. Two to three minute, four minute videos were long. That was it because they were quick hits.Josh Pitts:Yeah, and that’s just it. So people are asking themselves like, “Josh, I can’t do a podcast. I can’t sit for 30 minutes and talk to somebody.” It doesn’t have to be 30 minutes long. Again, if Alec is a real estate agent and I’m bringing in a local business owner or a local bakery or a local restaurant, that’s right there just introducing themselves. Alec can introduce himself. “Hey, I’ve been a real estate agent for how long. I’m with this company.” Talk about the house. There’s a couple of minutes. Now, the local restaurant owner, talk about them, why they started the restaurant, the food that they have. “Hey, we’re offering a 25% discount during this time if you come to this open house.” That’s 10, 15 minutes right there.And again, here’s the thing that I see originators making the mistake, is they think the show has to be about them. Alec, my brand and my show has been built around other people. Great people like Alec. You don’t have to be the expert in mortgage, but you don’t have to be the center of attention. Other people love when you stroke their egos. Focus on Alec, focus on their other restaurant person. You may say 30 seconds of content, but you’re the one who initiated it so people see you as that expert. Guys, this is the stuff that is actually going to change your world.Alec Hanson:It’s such a no brainer. Here’s how I want to compliment what you’re saying. So one of the first books that was thrown in my face as this young sales guy was How to Win Friends and Influence People, Dale Carnegie. Classic book, super aged and old, but super relevant all the time. You don’t have to have the content. If you just ask people to talk about themselves, they will talk forever about themselves. And exactly Josh, what you said. If you ask them to introduce themselves.Let’s say it’s a local restaurant, which they’re all struggling. They’re all struggling right now. They can’t open. They’re doing takeout. They’re trying to be creative. And you get the owner on the podcast. You talk to him, you go, ‘When did you start the restaurant? What’s your favorite dish there? How are you managing this COVID insanity? And how can people help you?” That’s 40 minutes. Those four questions will consume 40 minutes of conversation while this business owner explains how they’re trying to save people’s jobs that are employees’ jobs, their cooks and their waitresses and their staff, and how they’re trying to support their community. And the whole time, all you got to sit there and just do is just this. “Yeah, tell me more. Yeah, tell me more.” You just got to do it.Josh Pitts:You do, simply. And coming back to that Alec, you just have to do it. Because I guarantee there’s somebody watching this show right now like, “Oh, I can’t do that.” You can. Let’s just talk about worst case scenario. So let’s say you do this. You reach out to Alec, you say, “Hey, I hear you’re a real estate agent. You’re doing this open house.” I don’t even know if people can do open houses right now. Let’s just talk about there’s no open house. Let’s just say, “Hey Alec, let’s have you on the show. Let’s talk about our local community. So you’re a local real estate agent. I want to have you on my podcast. And where’s your favorite place to eat? Oh, you love to eat at In-N-Out down the road. I can think of anything else and In-N-Out sounds delicious to me right now. So hey, let’s reach out to the local manager.Speaking of, total side note. There was a run from 2015 to 2017, In-N-Out had just come to Utah, and I reached out to one of the managers and I said, “Hey, let’s do a show talking about it.” That’s when I was first getting into all this stuff. I did that. I won the business of every chain inside of Utah. I did almost every loan for In-N-Out employees for years, and doing something just like this.Alec Hanson:Mikey, that’s one of our clips right there, dude. That’s so gold. That’s so gold. All you did was interview the In-N-Out guys and you got all of their business?Josh Pitts:Dude, I literally was doing In-N-Out. It’s funny because me and another real estate agent, we were doing those… They just came to us. We became the local In-N-Out mortgage people just because I did an interview with them. I’m like, “Hey, let’s talk about In-N-Out, why they’re coming to Utah, why it’s good timing for that.” And dude, that provided me millions, tens of millions of dollars of business over the next couple of years. All over a simple interview. So anyway, going back to this, if there’s not an open house…Alec Hanson:It’s so easy, dude. And look, I don’t want to downplay anybody’s hard work here. I’m not trying to crap on anybody and be like, “It’s so easy to get loans. All you have to do is interview the In-N-Out guy.” But sometimes it is that easy. Some day you just showed up. I can’t do it sometimes.Josh Pitts:And you may be thinking, “Well, I can’t do that.” But why can’t you? Yes you can. It truly is just a decision you have to make in your head if you’re willing to. You have to be uncomfortable. If you want to grow, if you want to grow your business, especially in times right now. I love the comment by Bob [Guertin 00:44:03]. Sorry, Bob, I probably slaughtered your last name…Alec Hanson:I think you got it.Josh Pitts:… but you have to think outside the box. It’s outside of the box thinking right now. That’s what you have to do. These ideas Alec and I are giving you right now, this is outside the box thinking. You just have to be willing to execute on it. Showing up is just part of it, and that’s why it’s show up and hustle. Now you showed up, now you actually have to go do something with what we’re giving you. And everybody can.Alec Hanson:And here’s the thing guys, everybody listening, you get better. It’s a skill. No one likes lifting weights in the beginning. No one likes it, you’re terrible at it, no one likes working out in the beginning. And we all know the truth, it’s a skill. You get better and you get more confident and you get more relaxed and everything improves. But if you don’t start, you never see the benefit of that.Josh Pitts:Perfection comes through practice. Like I tell everybody, “Your first video is going to suck.” I’m sure you’ve gone back and watched some of your first interviews, Alec, and some of your first videos? So bad.Alec Hanson:I don’t even bring that into my life anymore. I’m free. That’s the past, I’m looking to the future.Josh Pitts:But all of you can do it. Don’t expect your first video to look like this. Alec has done a great job and built it over time. Your first video, people, they want to see you. And here’s the thing and you’ve heard it before. It’s so cliche, but people think about you a lot less than you think they think about you. They’re not thinking about “Oh my gosh, that video Alec just put out, that was garbage. That was terrible.” They’re just happy to see you right now. People are craving that relationship. You just got to put out some type of content so they see you, that’s it.Alec Hanson:And I want to compliment that by saying everyone has their unique audience.Josh Pitts:Oh, 100%.Alec Hanson:There’s people that like me. They like my goofiness, they like my nerdiness. And there’s lots of people that are like, “I hate this guy. I don’t like him.” They don’t have a connection to me. And you have to realize, your unique audience is literally waiting for you to step out into the spotlight. I always make this comment, as much as we try to be enlightened, we judge people. We’re judging people. You’re judging me right now. Not you, Josh. You love me. I know you love me. But you’re judging this episode. You do it all the time. You see someone on the street, you judge them immediately. And then sure, you can change your judgment and you can try.But my point is, sometimes they want to see their own people, whoever they are, come online and then they immediately resonate. Josh, there are some people that we resonate with instantly. Right?Josh Pitts:Yep.Alec Hanson:You see them. Kind of like when I mentioned our show up similarities. I feel like we’re kindred spirits. You have that connection. So if you never show up, that whole group of people that is waiting for you, they’re not going to ever get to experience you. And you need to show up for your audience. Everyone has a unique audience waiting for them.Josh Pitts:And that dude, I couldn’t have said it any better. Show up for your audience. Here’s the thing, one of the mistakes I see originators trying to do is they try to put out content that attracts other originators. Why would you ever do that? What is wrong with you? And here’s the thing too, I’ll have an originator say, “Oh Josh. Well, I saw this other piece of content, but I can’t put that out because they already did.” Yeah, you can. One of my favorite lines is steal like an artist by Austin. Another great book, Steal Like an Artist by Austin Kleon. My favorite book in the world, Steal Like an Artist. Now, I’m not telling you to plagiarize and say word for word. Don’t be Jay Shetty. Don’t be an idiot.But if Alec does a great video and I’m connected to him as an originator. And, again, he’s in a completely different demographic. He’s in California, I’m in Utah. I’m going to go take that video, I’m going to put it out to my audience too. I’m just going to put it in my own words. Don’t overthink content. Our industry is full of great people. I can think of some phenomenal people. If you don’t follow Ryan and Jessica Ehler right now, Ryan Ehler puts out some phenomenal content. Does a great job with it. There’s so many. Andrew and Katie puts out great content. There’s so many great people putting out content, go follow them, watch the videos that they put out, and then just put your own spin on it.Because again, your audience is waiting for Alec. My audience is waiting for Josh. Ivan’s audience is waiting for Ivan. Omar’s waiting for Omar. But they’re waiting for you. They’re not seeing the rest of the industry’s videos right now. They’re just waiting for you, so go put out content for them.Alec Hanson:That’s the end dude. That’s got to be how we wrap this down. They are waiting for you. So, Josh, super excited for Squad. Can not wait. Everyone on here that is watching this not live or on a replay, connect to this guy. Wait for the Squad announcement drop. When is it coming? Do you have a date?Josh Pitts:Yeah, May 1st.Alec Hanson:Oh, we’re here. Okay. May 1st, man. We’re on the edge of it. That’s pretty cool.Josh Pitts:It’s coming.Alec Hanson:That’s going to be an epic community of like-minded people trying to push themselves forward. I love that you’re doing that. Thank you for hanging out with me today. Thank you for everything you do for this industry. Guys, thank you for listening and participating with this guy. Please like, share, respond, all that stuff. We love engagement. I love doing this live. I love the comments. This is going to be the new thing, the new normal. So thank you guys for hanging with us. And with that, end the show. Take care.

The Direct to Consumer Influence

This pandemic has made it so abundantly clear that direct to consumer influence is the key to future success. Join me for a discussion on this topic.

What the Highlights are in this LiveTime with Alec:

  • What comes from human interaction.
  • Don’t be afraid and get out there!
  • Steps to create the necessary human connection.
  • GET ONLINE AND SAY HI!

Episode Transcribe

What’s up everybody? 

Good morning.

 Man, I hope whatever day it is for you is going well.

 I cannot believe that in this chaotic times everything seems to blend together into one time block of squishiness. I can’t handle it. It feels like Monday every day. Saturdays, Sundays, doesn’t matter. I don’t know what day it is anymore. I hope you’re surviving quarantine life.Welcome to my garage where I am hiding from my family and talking to you guys. We are live. LinkedIn, Facebook, YouTube. Thanks for hanging out with me today.I have a topic that has been on my mind, and I’ve been kind of advocate for this topic for a long time, and now man, it is never more true than ever before. Our business as local mortgage professionals who rely on referrals from our strategic partnerships has been clearly shown as problematic in times like this. Let’s just be honest, if you’re a local mortgage pro who lives on referral business from real estate professionals, how are you meeting new real estate professionals right now? Yes, I know you’re using digital means, you’re doing Zoom calls, but it’s not the same is it? It’s dramatically different, and the skills we had of … Like when I was raised in I was taught Wednesdays, Thursdays, Fridays, Saturdays, Sundays open houses, broker previews.By the way, if you’re jumping on and saying hi, I’d love to know where you’re from and where you’re watching this from. So could you throw me a comment, and I’d love to just hear where everybody’s at and how working from home is going.So back to my point. You’ve got a crazy new world where you can’t do what you used to do. My whole prospecting bag was Wednesday, Thursday, Friday broker previews, meet agents, go out, tour the houses. Saturday, Sunday open houses, tour the houses, go out, and then turn around and fast forward. For a lot of us who have maintained that strategy, we can’t do it anymore. What’s up, Gilbert? Hi Claudia from [NoCal 00:02:39]. I miss north Cal. I hope it’s good up there. My family’s up there. They’re in lockdown. They’re hanging out. Wine country. Gary, I wish I could be in wine country right now. That is no doubt. Arizona. Hi, [Renee 00:02:52].So man, we have seen a radical shift. How many of you guys have become IT support for your kids because the teachers and the kids can’t figure out the Zoom calls? How many of us have kind of gotten a little bit sad and depressed in this environment? I know I have. It’s hard. I don’t like it. I was out with my wife yesterday hanging out with the kids at a park, and of course maintaining social distance and no one’s around. And I looked … What’s up Kevin in Long Island? There’s great things happening in it. I’m definitely a positive person, but I definitely have space in my emotional capacity to realize that this is not ideal, and sometimes it’s hard. Sometimes it sucks.What’s up Mary D? Hi, Paul. So here’s my comment. [Daul 00:03:40] from Newport. What’s up, man? This is where it becomes so self-evident to me that this pandemic has highlighted and put a spotlight on the reality that the future success of anybody in referral based business, I don’t care if you sell insurance, I don’t care if you are a CPA, I don’t care. If you get your business through referrals, this environment clearly demonstrates at the core foundation of anybody’s future success is going to be direct to community, direct to consumer, direct to our digital ecosystem influence. I just don’t know how else to say it.You can’t go out and meet people anymore. You can’t go to open houses. You can’t do what you used to do, and so now you’re hanging out with me online and we’re figuring this thing out together. So, I got something for you. I get energy out. I love that, but I also like to get really tactical about today, right now what can we be doing as professional mortgage professionals to generate influence and build relationship.Yeah James, that’s the comment, and it’s on LinkedIn, so I can’t post it up here. James says, “Digital plus local is now more important than ever. You have to build your local brand direct to human beings.” Yes, you have to, because our referral sources are struggling. Their business model has been radically challenged in this model. They can’t show open houses like they used to. They can’t do the business they used to do. They’re trying to pivot, too. So now it’s become so self-evident that our job today is to figure out how to do this in this new normal, and that’s going to only come through digital influence.While everybody is staring at their phones, now more than ever. Give me the answer on this if you’re watching really quick. What is your daily screen time usage right now on your phone? I know you’re embarrassed by it. Don’t be embarrassed by it. But what is your daily screen time average on your phone? You can access it. You get the pop up. I know you get the pop up. So tell me. Put a comment in. Be bold. What is your daily screen time average?I will start. I’m hitting 10. I’m hitting 10 hours. Jamie’s at five. That’s nice. Huge major problem here. This is only more evidence that the future of our success in business is going to be to show up where people are. I always used to laugh and joke abour mortgage professionals who are like, “I don’t go to open houses. I don’t go out to see realtors.” 20 hours if you count TV. Yeah, I know Henry. It’s the worst, dude. Okay, on LinkedIn we got Michael at eight hours, eight minutes. Six plus hours for Jen. Yeah, can we see this? This is the new normal. This is it for now. For now.But I don’t think we’re actually going back to the old way. If the quarantine and shelter in home is lifted this second, how many of you are rushing out to go to your local movie theater? How many is going to rush out and go to those busy restaurants and those malls? Not right away. You might do something exciting. You might go see friends, and man, I would love to see some friends. But this to me showcases that we’re in this for a longer period of time than anybody wants. So we got to figure out how to adapt, and direct-to-consumer influence is the name of the game.I want to share some tactics. I really want to get granular. What’s up, Minh? Minh Nguyen. Dude, this is the guy. If you’re not following Min Win you are not paying attention. This guy. Oh, right there. This guy. I’m serious. Learning so much from you, brother. Thank you for your leadership in this time.So, here’s my advice to get tactical. Number one, I’ve said this a thousand times. Please listen. Please listen. Every day while you sip your morning coffee and you got your social media up … Melanie says, “I’m not a people person,” so she’s happy about the quarantine. When you have your coffee and your videos up, whatever you do in the morning, pull up your CRM. Go to five to ten people per day and connect to them on social media. That’s tactic number one. Five to ten people a day. Make sure -that you did loans for- that you are connecting to them on social media.Josh Pitts who I take a lot of inspiration from. If you’re not following him with Shred Media, you’re missing out. In fact, if you’re watching this and you do follow Josh, tag him because I want to give him credit for this. He has been very clearly a prophet in the sense that your social media is now your CRM, and I was like, “That’s totally correct. That’s totally correct.” Your social media is now your CRM. Go through five to ten people a day in the social media. That’s number one.Number two. Number two you can do tactically every day is start engaging to human beings on social media. I know there are a lot of you who are stalkers. I know it. Oh Melanie on LinkedIn, Minh Nguyen, because you can’t see because you’re on LinkedIn, but he’s on Facebook. So maybe flip over to Facebook and check him out. Yeah, he’s doing God’s work. There’s no doubt.So my point is … I lost it, because I answered questions. This is why you got to be careful. All right, back to the tactic number two. Okay, tactic number on, five to ten people through your CRM, connect on social media. Tactic number two, five to ten people on your CRM, past customers, you send them a video text. I don’t care what platform you use. I don’t care if you are using Vidyard or BombBomb, but you got to use some kind of web-based platform, because you can’t send giant video texts. It won’t go through. And use the power of video to tell people in quarantine, especially your past customers, especially your realtors that you are looking out for them and that you care about them and that you took time out of your chaotic homeschool quarantine life to send them a video message that you care about them.So there’s two right there. Five to ten people a day connect on social media. Five to ten people a day send a video text personal to them. Not mass. Not mass. Human connection to say I’m thinking about you, I’m here for you, if you have questions let me know.The third thing you can do … Yeah, I see Mary D totally a stalker. Don’t be a Facebook stalker. You can’t meet people anymore in real life. So I want you to go online, and I want you to connect and engage with them. I want you to make comments. I want you to say thank you. I want you to say hi. Throw a like out there, but more importantly take a second to comment.This is kind of like a pro tip. It’s not really one of the free strategies and tactics I’m diving into today, but on social media, a like today is almost irrelevant. I know. I know they’re great. We all like likes. Yay. But they’re almost irrelevant because it didn’t take you any time, and I know that. You went bloop, bloop. Or you double click. It doesn’t mean something in the human human world, is an actual comment. Take a second to think about what somebody has posted and to give them your feedback, comment, and engagement. It goes so …Yeah Chris, this is it dude. Doesn’t it feel good when someone took a second? I’m feeling so happy right now with people commenting on this live feed. It’s lifting me up. It’s giving me more energy. This is true for you, too. So your ability to throw actual comments in makes such a huge difference. So don’t be a stalker. Be an engager, and that’s just a quick pro tip.The third thing that you should be doing on a daily basis … I know this part gets crazy. On a daily basis you need to be on a camera in people’s feeds sharing information. Now, I’ve gotten judgy on this topic before on what content and what information you should be sharing. At this point I’m like, “Try everything.” I don’t even care. I don’t even care. Try everything. Try anything, and here’s why I say this. There’s a gal that works with us named Nicki, and if you tag her … Do not tag her, because she will find me and she’ll get … I’m surprised I haven’t seen her comment already. This gal decided to take the camera and turn it on every day multiple times a day, and I guarantee some people are bothered or annoyed, because I’ve heard people say like, “I don’t like people that post all the time. It bothers me.” I’m like, “Okay, then do you. Do you, but let other people do themselves too, and let them do what they want to do.”Nicki does this 5:00 PM dance time with Nicki. I don’t know. I don’t know. I barely watch it. I just see it sometimes, and I’m like, “Okay, she’s going to dance at 5:00 on her time.” Then one day I went back, and I looked. I’m like, “I wonder if she’s getting any engagement. I wonder if she’s just out there by herself just dancing or if people are actually commenting.” Then I was like, “Oh my God, there’s like 27, 30 comments on these dance things. People are connecting.” And I was like, “I’m wrong.” I thought that would be … I wouldn’t. I’m not dancing at 5:00, but she is and it’s working. I was like, “Just get out there and see what works and doesn’t work.” Is that good? Just get out there and see what works and doesn’t work. But you do have to get out there.So let me hit the top three again, and then I have some closing comments. If you got a question or anything, I’m happy to dive wherever you guys want to dive. Number one, every day, every single day five to ten people from your CRM. Go find them on social media, send them a nice note, and say, “Hi, I’d love to connect with you on social.” Number two, five to ten personal text message videos to say, “Hi, I’m thinking about you,” to your referral partners and your past customers. Five to ten.I got to show this comment. Now Chris, get out of there. You’re distracting me from my number three. So five to ten personal video text messages. And number three, get online every single day and say hi. I’m going to give you two ways to do it. Number one, film a canned video. If you’re not good at filming videos, then I recommend an app called VlogEasy. V-L-O-G easy. VlogEasy. Yes, it’s a little bit expensive, but I’ve talked about this app before. You set up your little tripod with your phone with the camera facing towards you at eye level with light. You see my light? With light, and it only records you when you talk.For those of you that don’t like the stream of consciousness style speaking that you’re afraid of, because you might say something stupid, number one, don’t take yourself so seriously. But VlogEasy … You could say a sentence like, “Hey guys, it’s Alec. I wanted to send you this quick message today.” Then just pause and think about what you want to say next and be like, “There’s a lot of changes in the mortgage industry, blah, blah, blah.” And it will only record the parts when you’re talking, and then you can edit it and you can delete parts that you didn’t like. You can rerecord it, and you can put movie clips in it. But put a message out every day or go live.Now, that’s like the scariest thing of all time, because going live could feel like giving a presentation in front of 100 realtors or doing a consumer education event in front of 50 potential home buyers. And you’re like, “Whoa, that freaks me out. I’m not ready. What if I say something dumb? Or what if nobody shows up?” I got to tell you guys, I don’t think you have a choice anymore. If you want to play in this mortgage space in a consumer centric business where you serve customers and that’s your business, you’re going to have to show up online and talk to them. So, you need to have an audience, but then you need to show up and want to talk to them.Jamie, you have a great comment here. “I’m going to hold myself responsible. Dreading videos.” I know. There is massive amounts of fear surrounding us humans on video. The reality is you’re not along in that, and it also means it’s your opportunity. Because if other people are afraid and you’re willing to run into the roar and face it, then it’s your opportunity. It’s not something to be afraid of. It’s something to embrace.In closing here guys, unless you guys have some more questions for me … Oh, I do have a little announcement. I do. I do have a little secret announcement if you’ve hung out with me this far. I’m weird about it, because I still struggle with insecurity, and I really don’t like self-promotion because it makes me feel really yucky, but for the last year and a half I’ve been working on a book and an audiobook regarding a lot of the stuff that I’ve been collecting over the years from a lot of great people like you guys. It’s launching next month, and I’m really excited. Except I’m kind of nervous, and yeah, I will give you more information as it comes out. It’s called Bypassed. It’s out for pre-order right now, but don’t worry about it. If you really want to get weird, the audiobook is actually read by me, which is … If you want to know what makes you feel totally dumb, I mean like the dumbest is to do an audiobook and read it yourself. I’m like, “I wrote these words.”My buddy who helped me produce it is like, “He can’t read.” I’m like, “I thought I could read.” Henry says a Facebook question. If you have a Facebook question, throw it in there. Oh yeah, that’s a great Facebook question, Henry. Thank you. Yes. this is super good. “Easier to find people off your personal profile than your business pave. You finding that true for yourself?” Yeah, when I connect to people, and what I would encourage you to do when you connect to past customers, referral customers, et cetera, I would absolutely be connecting to your personal page. You’re a human. You’re a human. Connect as a human to them. That is incredibly powerful.Now, if they want to like your business page or if you want to ask them to like your business page, there’s an etiquette there. If I connect with you, Henry, and I’m like, “Hey what’s up? I did your loan. Remember me? Let’s be Facebook buddies.” Then the second I connect I’m like, “Like my business page.” There’s no relationship there. Like, “Dude, you’re trying to get your likes up on your business page.” It’s the same people on LinkedIn that immediately send you a pitch the second that you connect with them. They’re like, “Hey, I looked at your profile, and you’re a very handsome man. Can I have two minutes of your time to give you this pitch?” I’m like, “No, I got a lot going on.”So Henry, connect to people as humans, and then they’ll see your business page. They’ll see your postings. They’ll see what’s going on, especially if you’re sharing it from your personal page. Then you’ll get a chance to connect. But this is my ultimate truth for all you guys. Look, people do business with brands and people that they like. So, are you a likable person? Do they like you? Do you have a relationship? Because here’s what’s crazy. Amazon is a nameless brand. Faceless, nameless brand. There’s no soul. There’s no person. You’re not buying from a human. You’re buying from a brand, but you love it. You love it. In fact, how many of you out there are so pissed right now that you can’t get everything in next day delivery? You’re super mad, aren’t you? You’re like, “Hmm, they’re helping people, but I want my whatever light by tomorrow.” We’re all made, because we can’t get I, but it doesn’t matter. You love when Amazon delivers to you.So back to my comment, people do business with brands or people that they like. If you don’t have that first, you never get a chance to execute and show them how great you really are. I hope this will helpful. As a reminder if you joined late. Here are the three things. Hey Rick, great stuff. Thanks dude. Thank you. Here are the three things. Number one, it is so clearly obvious that through this and onward into the future, one massive pillar of your origination strategy of your way to get business has to be direct to human influence. Digital or hopefully physical when we can get there again. But digital clearly. So you got to know that’s got to be it. I got to have that as a major pillar.Yes, you can have referral partners. Yes, for sure. I love them. They’re amazing partners. They’re having a hard time right now getting you business. So, you got to build up this other side, and you do that by making sure every single person you’ve ever done a loan for is connected to you on social media. You do that by sending personal video text messages to those humans to say you love them and you care about them and you’re here for them, including your referral partners. Then you also do that by getting online every day, by turning the camera around, and by delivering a message to those people about what’s going on in the industry and how you can be helpful or what to look out for.I know that part gets scary or it gets hard or overwhelming like, “What am I going to say every day?” You’ll figure it out. You can just document what you’re doing every day the Gary Vee style. It’s my favorite thing. Just showcase what you’re doing. [Sean Uyehara 00:22:12] in Nevada, guy crushes this. I’m jealous trying to learn how to document my life when my kids are attacking me and I’m hiding in my garage. But those are the three things, guys, to lean into.The future success for you and everybody else is going to be built on influence, and you got to step into it. Yes, you will have nobody watching in the beginning except maybe your mom and friends and family. Hi, mom. But eventually you’ll get thousands and thousands of people paying attention and being influenced. Even if they don’t watch your video, they saw it. They saw your smiling face. They saw you leaning into something new and hard.Here’s what I would love. My last thing to help each other, to share with each other. If you have gotten into video, can you share in a comment really quick what happened in your first few videos? Here’s what I know happened, and so you’re going to validate this for me. Your community wrapped their arms around you and gave you a big digital hug. I guarantee it. I guarantee in your first few videos, your community stood up for you and said, “Hey, I’m here. What’s up? What are you doing? How can I be a part of this? This is so cool.” Gave you a like, gave you a comment. They wrapped you up, because humans, we want to lift each other up. We’re better together.So if you experienced that, I want you to put a comment in to let everybody that’s watching this know that it’s okay, that people are going to support you, and that you will get better over time and you will generate more influence and more opportunity the more you put yourself out there. Lead with vulnerability.Scott, yes. 100% dude “First few times scared as crap. People loved it.” Henry, nailing it. “Was great. No consistency though.” That’s okay. This is a new thing. You don’t go to the gym, and then after the first time you’re like, “Now I go every single day.” You’re going to have ebbs and flows. You’re going to have time when you’re consistent. Time when you’re not consistent, but this is how it works. What Scott said right here guys is exactly the right message. That’s all I got for you guys.If this helps you or if this is helping somebody else or you think it could help somebody else, it’s on YouTube forever. Please share it. Please like it. Please comment on it like you guys are doing. Thank you for engaging with me. I super appreciate it. I’ll see you guys online. I hope you have a wonderful day.

Vulnerability Wins

Watch and connect on a topic I believe deeply about. In these times, leaning into vulnerability will massively change your life!

What you get from this edition of LiveTime with Alec:

  • Vulnerability, successful people lean into this.
  • Don’t be afraid of criticism; the world is KIND!
  • Find out what GROUP THINK is…
  • How this will help you take advantage of the great opportunity coming your way. Interest rates…

Episode Transcribe

​What’s up everybody.

Oh, masks are so amazing.

 Isn’t it a wild world where we have masks and we walk around? If you go outside, it’s like a zombie apocalypse hit. It’s the weirdest freaking thing. I hate it. Hey guys, thanks for joining, fun to talk to you today. Love to have more of a dialogue than a monologue today, but we’ll see. I’m on LinkedIn right now, checking it out. Sucks I have to look down at my phone to see what’s going on with LinkedIn, but thanks for hanging with me. Vulnerability. Yes. Got super motivated that I even made a really cool little bumper for this and got focused to talk this thing out. Hi Kim. We just hung out a few minutes ago and now we’re hanging out on social. It’s nice to see you.This was an “Aha!” Moment for me in my career, and I hope it will be for you as well and I hope that you can lean into it with me. I feel motivated to talk about it because of social distancing and distance learning that my kids are doing, and effectively my wife’s doing, and just the reality of a digital world. In California, we got the notice that all beaches are being closed, which is going to cause … I’m fully convinced we’re on the edge of a revolution. I know that sounds a little intense, but do you agree with me like a little bit? Like, are you losing it? Like “One person tells me one more thing.” I guarantee someone’s out there like, “I’m going surfing, close my beach.” I know it’s happening.I feel like we’re back in the prohibition days of, you know, we told everyone they can’t drink alcohol and that went really good. Now you’re telling everybody they can’t go to the beach, they can’t go to any park, they can’t go hike. I don’t think Americans are going to take it much longer. What’s up Frank? It’s good to see you, dude. I think we’re going to start rebelling. I don’t know. Could be wrong. Not what you’re here to talk about. Orange County only crazy, yeah, just wait dude, Herman, just wait, it’s going to close everything down. Yeah, Jenna, yes, I’m losing it.Let’s talk about vulnerability. As a show of support, I would love for any of you to comment if you are terrified of video. Terrified. Like it’s amazing, I was just joking with our Hawaii team we’ll go meet face to face with a realtor partner all day long. We’ll go sit down, have cocktails, have a beer sit there. All of a sudden, you go, “Hey, let’s jump on a video call.” They’re like, “No.” Or you’re like, “Ugh.” I’m like, “Whoa, hold on, dude. You would have met with me face to face, no problem, and nothing would have been hidden then. Now you want to do it this way and you freak out?” Right? Yeah. Frank, everyone, Brittany on LinkedIn. Yep. Yeah. It’s amazing. Isn’t it? All of a sudden, this one little camera pops up and we all freak out, but we’ll go hang out face to face all day long with everybody, no problem. Then all of a sudden, can’t do it here/ but I have to tell you that if you’re going to be in sales, sales, a lot of you are in sales.By the way, can we just have a tangent? Everything is sales. Everything, everything is sales. Do you guys agree with me on that? I’m fully convinced that I don’t care what you’re doing, you’re a teacher, you’re selling somebody something I’m serious. You’re selling somebody something. I don’t care what job you do. Pick a job that’s not sales, I’ll wait. Where there’s no sales involved whatsoever. Because you can’t do it. Someone’s going to do it right now, and I know, because I know there are some, okay, whatever. If you’re going to be in sales, you’ve got to be on video, because right now there’s no other way to meet, how are you going to meet your customers? How you meet your clients? You can’t. You got to be on video to meet everybody. That’s just the truth of our reality today.It will change, but it’s the truth of our reality today. It might not change for a very long time. We are not going back as a society to pre-COVID activities. We’re not. You’re not telling me that you’re going to rush right out and go to a restaurant the second they all open up. You’re not telling me you’re going to rush right out and go to a packed basketball game the second this thing opens up. You’re not. Sohrab, thank you. Yeah. The COVID beard. I am fully committed to growing this beard until we are reopened. Reopen America, this is a reopen America rally beard, and I’m going to grow it. I’m trying to like tame it. I’ll just stand further back. Now it looks semi-normal. You can’t see it.Yeah. If you have kids, this is funny, Brian Garrett, if you have kids everything is sales. Dinnertime, bedtime, everything. Yeah. Guys, welcome to the new world. This is where vulnerability wins, because you, as a sales professional, or even you as a leader, it is okay to show vulnerability, guys and gals. I say guys as a generic term. I’m sorry. I’m from SoCal, like “Guys!” It’s sex agnostic. I don’t know. It is okay to show vulnerability. It is okay to say that you don’t know everything. It is okay to step onto the video and say, “I don’t know what I’m doing, but I’m going into the pool.” It’s okay. That is where life is. You know how many people think you have to know it all, especially if you’re in sales, the sales fear all the time of “What if I get up and I do a presentation and I don’t know everything, and a realtor or a customer throws a question at me and stumps me, and I’m an idiot?”Guys, I have never had a customer in my life of sales where I went to them and said, “You know what? I don’t know the answer to that, here’s the answer to these things. Give me like five minutes or give me till the end of the day or give me whatever and I will get the answer and come back to you.” I have never had anybody say to me, “Are you kidding? You idiot. I’m not working with you. You don’t know the answer to my immediate question?” Like never guys. Showcasing your vulnerability is what leadership is. It’s what true sales is. It’s what makes you an authentic human.People don’t want to do business with robots. They want to do business with you. The problem is that you’re hiding yourself and all the things you used to be able to do, which was go to networking events, go to broker previews, go to caravans, go to open houses, go into your office, bring a customer into your office, do a face to face loan application you can’t do anymore. Sorry. Pivot. You have to pivot. The game changed. It changed on you. What are you going to do?I had a really fun conversation with another great leader at our company named Brian Kobe. If you’ve listened to the podcast, it’s on there. If you listen to some of our livestreams on my YouTube channel, it’s there. The same conversation which is, it’s okay not to know everything. It’s even more okay not to be good at everything. It’s totally okay. When did it not be okay? When did it not be okay for a leader to say, “I don’t know the answer to that. What’s your thoughts?” When did it not be okay for you to go on video and say, “I’m terrified of this thing. I don’t even know what I’m doing, but I’m here because I have something important to share with you guys.” It blows my mind.In fact, in sales today, if you’re willing to be vulnerable and step into the space, you will make a dramatic impact in the success of your business. Oh, this is great, Heidi. This is a great comment from YouTube. “I was raised never to leave the house without being perfectly coiffed. I don’t know how to pronounce that. I don’t know how to pronounce that. I know what it means. It’s not going to happen on video and yeah, it’s not, it’s not. You can have the best lighting and you can the best microphone. I’m still going to have a light, a bald spot light on my giant forehead. Guys, you can’t have it all, but you can play the game and you can lead and you can put yourself into a vulnerable position to lead.In sales today, it’s not about the old snake oil salesman of the past, or some fancy pitch, or some great commercial. It’s not about any of that stuff. It’s about authentic human connection. If you’re in mortgages, you provide a service, and so you need to show up. It’s amazing. Yeah. This is a good one. “We were born with this face. We got to deal with it.” It’s the same joke I always say. It’s not like you have a stunt double in your loan applications, your face to face loan consultations, you bring in the stunt double? Guys, gals, no. My encouragement for you today is to be okay being vulnerable. Vulnerability wins. Your ability to be vulnerable wins. It will win you more sales, it’ll win you more relationships, more authentic relationships. I don’t know why it’s not okay for you, for us not to be perfect anymore.You know, Shaun makes a good point here and I’ll share it. Because it kind of pivots the vulnerability conversation, but the more vulnerable you’re willing to be and learning and stepping into new spaces, the better you will get. Look, guys, I’m going to cut this in a different direction, check this out. This is my first live stream. This background. I didn’t have the premium version of Stream Yard, which I love the Stream Yard, by the way. I used whatever they had. Then, I didn’t know what I was doing at all.Heidi, this is funny. Thank you. Yeah. Surprise. Look guys, I had my sexy intro with the music starting in 30 seconds. This is what I had when I first went and I was on my phone. Then I figured out what Figma was. I watched a video and I literally changed the colors. See what I did there? Just changed the colors and the text, and then I was like, “Well, wait a minute. I’ll move stuff around. I’ll put my social media things up there. Whoa, what if I did this? Ooh, look, I got my Twitter handle up there now.” Then there was like, boom. Then I got crazy and I’m like, “Oh look, I put graffiti because, and then I put bricks.” Guys, I don’t care how you show up. Just show up and play the game. You’d be surprised how amazing, that logo.My encouragement, how are you going to be vulnerable today in your business? Why don’t you raise your hand and just say, “I don’t know how to do this stuff, but I’m going in.” There are so many amazing people right now who are just afraid to show up and who are trying to master the behind the scenes bullshit. I know I shouldn’t cuss, but I had to land it. You had to hear me, because it’s garbage. It’s a lie that you got to have the graphics and the banner and the music, and then you can do, stop it. Just play. First of all, don’t you realize that the world and human beings, as an individual, are way more graceful than you think they are. They are not jerks. When I released my podcast, my first episode of the podcast, I got like 50 people who five starred me, gave me a really nice comment, and I got one person who one starred me, which I don’t know who it is, because you don’t even know.Guys, the world is kind. Your digital community, your friends and family around you on the digital ecosystem are kind. They love you. They care about you. They’re going to support you. You still got to go into the deep end and start swimming and paddling and kicking. You’ll get stronger and you’ll get better. Then, you’ll learn fun, cool, dorky stuff.I have a really fun live podcast coming out with Rene Rodriguez. One of the things that I know, if you don’t know who Renee is, start the Google machine and go find this guy. He’s a very talented speaker, presenter, thought leader, just a really talented man. One of the things that we’re going to be talking about is group think, group think. As you start to get vulnerable, as you start to admit you don’t know things. As you start to open up the opportunity to potentially learn new things, you can find yourself in new groups and these new groups of people who are watching YouTube channels about how to do video, just these are the people that are going to inspire you and lift you up.It’s incredible, I mean the amount of people in my ecosystem that I’ve found through stepping into this kind of more social, more vulnerable, more live place has been incredibly cool. I’ve been inspired. I’ve been educated, I’ve been trained and taught. I’ve been learned all the fun things because of the people I’m surrounding myself with. The same thing is available to you. The same exact thing is available to you. Does that make sense? I am giving you 100% permission to be okay to be vulnerable, to put yourself out there in a position of vulnerability, because that’s what great leaders do. That’s what great salespeople do. That’s what successful people do.If you’re in the mortgage industry, there is an unbelievable opportunity coming at us right now. I want to paint a little bit of a picture. The most unbelievable opportunity is coming at us. All right? I can’t claim that I invented this or that I knew this before, because again, not that smart, just in the pool swimming. That’s why you’re hanging out with me. Anthony Shay, our CEO at LoanDepot called it. He watches annual refinance churn, which is a stat people don’t watch. They don’t look at the refinance churn of the industry. They look at total volume, purchase volume. They don’t look at refinance churn. My wife’s texting me. I’m not sure if I should look at it or just, I swiped up and I don’t know if I’m going to pay for that, but I don’t know. Here we go. One of the things that he acknowledged that, so here’s the fact, right? Right now, approximately there’s $11 trillion of mortgage debt in the United States. I’m going to let you sit on that one for a minute. 11 trillion.Man, that’s a lot of mortgage debt. Last year, the entire industry, the entire mortgage industry, not just LoanDepot, funded four trillion. Okay? Guys, if this world normalizes, because we’re in insanity land still, people aren’t working. It sucks. As we go back to work, one of the most incredible thing is going to happen. Interest rates are likely going to be lower than they’ve ever been in the history of the United States. They’re low now. They’re great now. You should look to get a refinance or a purchase right now, they’re amazing. I think they’re going to go lower. Don’t wait if by the way, someone’s going to hear this and be like, “Oh, then I’m waiting.” Don’t wait, because I don’t have a crystal ball and if I’m wrong, you’re going to be like, “Alec told me to wait.” And now you hate me. Don’t do that. You got to get a deal in front of you, take the deal.I think they’re going to go lower, which means of the $11 trillion of outstanding mortgage debt, we could see an environment where six to seven to eight trillion of that debt is in the money. Meaning, they have a higher rate and they should refinance. As that world emerges post COVID, and as that seven, eight, six, probably $7 trillion of mortgage debt turns into money as rates go lower, the industry only funded 4 trillion last year, that includes purchased business. I’m just talking about refinance opportunity. There’s not enough money in the game, in the system, in the matrix, we funded 4 trillion. How are we going to flex up to eight plus purchase? It’s going to be an insane time. Your opportunity is directly connected to the level of influence and relationship you have with the people around you. If you want scale, if you want opportunity, if you want to change your life and the lives of thousands of people forever, you need to step into vulnerability. You need to put yourself in a place where you can be found. In a place where people are going to judge you again.I don’t even care what you sell. You got to put yourself out into the public world on video in all your glory. You need to say, “I’m here. I have a purpose. I have a mission. this is what I believe in as my business.” You need to be in the water. Because when this opportunity comes, we’re in the midst of it right now, too. As the opportunity expands, as it expands, you could have the career of your life if you just got vulnerable and got into the water where the people are.I don’t know how else to say it guys. That’s it. It is coming. If you surf or if you’ve been in surfing or if you watched a surfing video, it’s called a set. You can see it out in the ocean. You can see these mountains kind of rolling towards you and you go, “Oh man, the big one’s coming.” The water starts getting sucked out and you got two options. You can turn and go into the shore, paddle like hell, just get out, get out of the water, because the big one’s coming. Second option is you go towards the set. You try to beat it. You try to get there before it breaks so you can come over it. Because sometimes it’s too big, it’s too scary, you don’t want to ride it. You got to charge it. You got to charge it, and you’ve got to get up and get over it before it crashes, or the third thing. The third thing is you maneuver your surfboard, you get it right in the spot, and as the wave crests, the biggest wave we’ve ever seen in the mortgage industry, you’re there to ride it.You got to be vulnerable. You got to put yourself out where the waves are. Out in the place. You have the best two, three year run of your entire career ahead of you, but vulnerability wins. Not overproduced BS, not overproduced content where it’s commercialized, not when you hire a thousand people to help you produce commercials because humans are sick of commercials. They’re sick of it. They don’t want to see it anymore. None of us do. We are literally on Netflix to hide from commercials. If we ever watch TV again, we’re like, “Oh I can’t fast forward.” We hate it. I see so many mortgage professionals over scripting over producing their content. It’s a mistake. It’s a mistake. You look like white noise. You’re being ignored.Be vulnerable, be authentic, be real, and you will captivate opportunity like you’ve never had in your entire career. You hear me on this? Hear me on this. Don’t worry about the logos and the videos and the graphics. Don’t, don’t. Jump in. This is from Jason in Hawaii. He would know. In the right wave, the spot makes it a no paddle takeoff. You just drop in and stand up. That’s what we’re facing right now in our industry. That’s where I’m encouraging all of you to go. I’m pushing you in there. I’m yelling at you on social media, get vulnerable. There are so many tips and tricks out there, guys, on the YouTube and on my own channel about how to give yourself more confidence. I’ve talked about lighting and camera angle, and microphone and recording and all that stuff, all that stuff’s out there. You can Google it all. You can YouTube it all. You can learn it all. None of it matters if you don’t turn on the camera.You know, Gary V has been talking about this for quite some time. He would always say, and some of his caveats and I disagree with him. He would always say, “If video’s not your thing, then write articles or do audio and do podcasts and only do audio.” I agree to that to a degree. I agree with that to a degree, but I’m going to challenge it. I’m going to challenge it because I do think video is for everybody, because human connection is for everybody. It is. I don’t know how else to say it. I think if you’re going to be in direct sales, if you sell things, you don’t have a choice. You either play in the video space or you change industries. Because it’s going to roll you over. You might as well change on your own terms.I’m sorry if that sounds super harsh. I just like heard that in my head and I was like, “Ooh, you’re bringing, bringing the heat right now dude. Back it up a tiny bit and calm down.” As Brian said on LinkedIn, “Sorry, not sorry.” I care more about our great salespeople in this industry than offending you with that comment. I care more about your ability to have the success you’re capable of than if I offended you, because now you’re like, “Wow. He said I should have to be on video.” Yeah, you do. That’s my encouragement for you today. Turn on the camera, get vulnerable. It’s super okay. You have my permission. You don’t need the stupid graphics. You don’t need the brands. You don’t need the pictures. You don’t need anything. Okay?You just need to have the light on and the camera on and you can talk to your people and you just share your message about what you’re passionate about, what you care about, why you’re in this industry. What are you doing this to help people today? Tell your story and you will absolutely transform your life and your career. Does it make sense? That’s all I got for you, my friends. If you have any questions, I’ll take them. Other than that, I’ll leave you to have a wonderful rest of your week social distancing at home, with all the beaches closed. I hope you hug your loved ones and I hope you have a wonderful, wonderful week and weekend. See you on the internets.

Modern Lending Podcast | David King

Alec has David King on, he is the Executive Vice President, Chief Marketing Officer at LoanDepot. He speaks with Alec today on how to tell a story and the power of branding.

Your snippet of this episode of the Modern Lending Podcast:

  • How are you telling your story?
  • Everyone starts of small, David started with a camcorder and an old iMac
  • Identifying your why, who and what
  • What is the feeling when you look at brand or logo…

Episode Transcribe

Alec:What episode are we on? HAHAHAHAMike:Seven.Alec:You can keep that clip in. What’s up, Modern Lending Podcast, you’re tuning up for episode seven of the Modern Lending Podcast. I am bringing to you David King the chief marketing officer for loanDepot to talk about brand and marketing in a contemporary age. You don’t want to miss this one. There is a lot of confusion about what it is to brand yourself and what does a brand mean. And there’s a lot of people that are confusing that with logos and taglines and colors and what all of those things have a place. Man, tune in you’re going to really enjoy this conversation. Let’s kick it of with David King.What’s up everybody here we go. Another episode of the Modern Lending Podcast, I’m here with my homie David King. The chief marketing officer at loanDepot.David King:That’s right.Alec:Were going to have some fun.David King:I hope so.Alec:I got some good stuff. I got some questions. We’ve got some stuff to talk about. And so for those who don’t know, I’ve been actually a fun of David in the industry for a long time. Watched what you’ve done at previous companies, I’d love for you to share some on your background. But you’re newer to loanDepot.David King:Four months.Alec:Four months old.David King:Four months.Alec:So that’s like you got top of your legs, you’ve been walking around a little bit. I’m really excited to talk to you about lots of stuff. Number one, I feel like you have tremendous really cool insight into branding and into story telling and into that marketing aspect that is very contemporary and everyone is leaning into. So I’d love to unpack that and before we go into my questions, give everybody that’s listening either on YouTube and watching, hello. Love you guys, or on the podcast, just your background so people can know who you are, who don’t know you.David King:Yeah. So I was just talking just a few minutes ago about how I came into what I do know. I’ve been doing what I do know for almost 10 years. But really, I say I got into it by accident but not really. I own my own business, I was in a completely different industry.Alec:Which was?David King:Home Security Systems.Alec:That is very close to marketing.David King:Yeah. So I worked for about, between five to six years for ADT Security.Alec:Awesome.David King:And I did mostly sales, but I did some installers while I really wanted to get my hands dirty.Alec:You mean sales, was this door to door or was this relationship sales?David King:Both. Both.Alec:You did door knocking?David King:I did.Alec:You got know what the street’s like.David King:You learn a lot about yourself when you got to knock on a door and I did both residential and small business. I believe it was 5,00 square feet and under. So it was all street malls and that kind of thing. I did about five to six years of sales and installers while learned the industry really well to the point where I felt I should own my own business, why not? Yeah, I know this thing,.Alec:Do it.David King:I’ll do it. So owned my own business for about six years doing the same thing. I was the CEO, the CFO, the CMO, and the sales guy. It was basically just me.Alec:I always joke a little bit because there’s so many people that very quickly, especially in the Insta-Age become the CEOs and founders of nothing.David King:Yeah. King Solutions, LLC.Alec:King Solutions. BOOM!David King:Yeah. So did that for about six years. But I’ve told this story a million times, but it was 2007, our kids were roughly eight and six and my wife was known for always, always having a camcorder in her hand, my brother bought me my very first camcorder for a wedding, back in 1999. One of these guys.Alec:Yeah. And for the audience, what’s a camcorder?David King:Right.Alec:Some millennials like, “I don’t… ” What is that?David King:Tape-based. It was a tape-based camcorder.Alec:[crosstalk 00:03:51] mini tapes.David King:So I bought my wife. She always had that video kit. So we’ve got still to this day, well, I don’t think we have VHS, but we had VHS, a closet full of VHS. And then I put it over to digital on DVD. But it was our 10th anniversary I think, or maybe 8th. I was 2007, that was the era when technology was really getting smarter, smaller.Alec:Oh, yeah it was wow.David King:It was the year that iPhone came out.Alec:Yeah.David King:Few years before that is when HD became a thing.Alec:Yep.David King:And you could still buy 720 TVs, and that the new thing was 1080, 1080i then 1080p.Alec:And now they’re giving away those TVs.David King:They are.Alec:Literally it’s like you go to Best Buy and they are like, “Would you like a free TV, with your candy bar.”David King:Exactly. So I bought my wife a new camcorder, a little small digital camcorder, that was the greatest thing in the world.Alec:Nice.David King:Around the same time bought myself my very first Apple product, iMac. And so I’m playing around with my iMac one night and I open up iMovie. What’s iMovie? Quickly figured out that I didn’t have any footage to edit with.Alec:You’ve got to have something in there.David King:So I’m living in Virginia Beach at the time and I said I want to get some footage so I can play around with this iMovie thing. My wife, my two kids and my mom went down to the beach, Virginia Beach and we played wiffle ball of about an hour.Alec:You just filmed them.David King:Filmed it. And had my daughter hold the camera sometimes-Alec:Nice.David King:… and my mom held the camera.Alec:Yeah, family event.David King:So I went back home and cut together a little two and a half, three minute long video. I thought I was the great thing since last [crosstalk 00:05:36].Alec:Of course, it’s amazing.David King:Put on YouTube, this is before I’m on Facebook. Put on YouTube and a few weeks later I go back to it and it’s got, I don’t know, 100 views, 200 views, something like that. More than I was expecting. And I was just tickled by that. And so I did another one, kind of the same results. And I was like, ” Oh, man I really love this video thing.” Telling stories.Alec:Oh, my gosh.David King:And so that goes on for, I don’t know, six months or so. This time I’m going on a pretty large church in Virginia Beach who does media very well. Big stage production and so on. So I decided I would go and see if I could volunteer in their media department, learn a little bit about their trade.Alec:There you go.David King:And the guy who run media there, they had a TV show and all that stuff.Alec:Oh, so big production.David King:Big production.Alec:Yeah.David King:And so I start volunteering and leaning a little bit more about professional grid. Editing professional grid cameras.Alec:And you’re still running the ADT business?David King:Yeah.Alec:Okay. Awesome.David King:And I had that till 2011, this is all the way back since 2007.Alec:Yeah.David King:And they asked me to put together a video that would play during memorial day. And the band would sing a big powerful, emotional song and my video would play timed out to the words and this, that and the other. And the video plays, and there’s about 2000 people in the auditorium and songs and big crescendo moment type thing and everyone’s on their feet, not because I got together the most amazing video ever. It was obviously out of respect of memorial day.Alec:Sure.David King:But I looked around and I could see tears in people’s eyes. And it was that moment after about, maybe doing a year, just forth or discovery and research and watching YouTube tutorials, teaching myself final cap pro and… It was at that moment that I decided that I’d found something that I really truly was passionate about. I wasn’t passionate about my business. I started that business because I was good at what I did and I want to be my own boss and make my own money and have that freedom flexibility, but I really, I’ll never own another business. Well, you never know. But I really found something that I was truly passionate about. I discovered something in me that I didn’t know was there. And something that brought me fulfillment and joy when I saw the emotion that was being drawn out of this people, after a moment that I helped create.Alec:Yeah, experience. That’s awesome.David King:So that’s how, long time ago kind of started in the creative world with a stupid little YouTube wiffle ball movie.Alec:It’s incredible. Is a star on YouTube?David King:It is.Alec:It wasn’t like I’m going to look in to that.David King:No. Don’t find it.Alec:You won’t find it.David King:You won’t find it.Alec:Dude. People have been defining drug time with Alec and smashing.David King:Sure. Sure.Alec:You’re with ball commercials, got nothing.David King:So I’ll fast forward after that of how I got from there-Alec:But I love the inspiration moment. That was incredibly cool. Yeah, what happened?David King:I go on a journey. And I told myself, I was out to eat with my brother, father, sister, and I said, “I’m going to find some way to do this for a living.” At that point I’ve been doing, it is mostly a hobby for about a year, maybe a year and a half. I said, “I’m going to find some way to do this for a living because I love it.” And so after a while just continuing doing the hobby thing, I started to get a couple phone calls from friends.Alec:Gigs.David King:The gigs.Alec:Yeah.David King:And so then it turned into a side business a freelance type opportunity-Alec:Its awesome.David King:… while I was doing on nights and weekends. Started making a little bit of money. I invest that into a new camera.Alec:Yeah, get the new gear.David King:Make a little bit more money, buy a new lens. Make a little bit more money, buy a new lighting kit and so on. And that goes on for about another two years ish. I’m just making up timeframes. But that goes on for about another two years. And this was 2010. Two years after the big mortgage cash.Alec:Meltdown.David King:Meltdown. And so my business just wasn’t going anywhere. And I knew that. And at that point, my business, it turned into a subcontracting business. So I was doing that for ADT. They’d hired my company to do their installs for them. And the day after Christmas, excuse me, 2010, I go in to get my jobs for the next week or month and they said, “We just merged with another large company, big acquisition, no more subcontractors.” And so I literally go back to door knocking.Alec:Sorry. So there’s loan officers by the way that really understand that, because they had their businesses shifted so dramatically in the crisis that was like, oh, it’s full reinvention time. Dude, I love that.David King:So I go back to door knocking for six months, and it was the most miserable time in my life, after owning a business for five years or so, and then you go back to just kind of grind.Alec:Grind, I thought I owned this already.David King:Yeah, but I learned a lot about myself during that time. What I was good at, what I wasn’t good at. And a good buddy of mine, in the mortgage industry, a loan officer called me up, knew I just hated what I was doing.Alec:Yes.David King:He said, “Hey, we’re hiring for a graphic designer. Do you want to come in and interview?”Alec:Yes.David King:And you’re like, excuse me. I was like… I knew my way around Photoshop, Illustrator, that kind of thing. Alec:All self taught.David King:All self taught, but I wouldn’t classify myself as a designer, graphic designer, but I went in and I said, I’m going to try and convince these guys to let me be a full-time video production staff at their mortgage company.Alec:There you go.David King:Go in and they’re like, “We’re mortgage company. We don’t need video.”Alec:Video.David King:A full-time video guy. What?Alec:By the way, fast forward 10 years and it’s so ahead of time.David King:Yeah. And I interviewed with the co-founder of the company and, I tried to convince him to hire me as a video guy. He was like, “No, we don’t need video, but I think you’d make a great loan officer.” Tried to convince me to become a loan officer. I said I’ve been in sales for 10 years. I’m done. I found-Alec:I’m not doing. And I’ve found your passion.David King:I found a passion. That I really was excited and was okay at the time and he said, “No.” I walk out and he said, “You ever change your mind, just give me a call.” I said the same thing, “You ever change your mind, you want to video to be part of what you do, call me.” Type thing. So his others partner, he was in church that weekend watching a video.Alec:Weird.David King:Yeah, it was about a week. Within the same week or so. And the video moved him emotionally and in church, picks his phone out of his pocket and says, “Hey, partner, next guy you hire in marketing needs to be a video guy.” So I come on board as a video guy. And I really honestly thought it was just a stepping stone. I really thought it was just my entry into the whole creative world. And ended up staying there for seven years.Alec:Awesome.David King:Yeah. And really just, I started that company with me and one other guy. A boy, Trey [Regdan 00:12:42]. He ended up being… Anyway, and left that company and had built a team of, it was about 40 to 50 people all in marketing, communications and a few other things.Alec:That’s awesome.David King:Yeah.Alec:So fast forward now and you took a brief stint serving the real estate community.David King:I did.Alec:Which is cool.David King:Yeah.Alec:Get a little background on our biggest partners and how they market and what their needs and desires are. And then you got sucked back into mortgage.David King:I never thought it would happen.Alec:Well, so you had that one line, you know line I’m talking about? That it was the greatest line I’ve ever heard in my life.David King:I think so.Alec:About loan officers.David King:No, I’m not going to say that one.Alec:What I appreciate about that admission, and just your heart in the space is that once you get into this business, and you realize the crazy salespeople are amazing human beings who are accomplishing such incredible things and impacting the local community, there really isn’t many people like loan officers in the world. They’re just a unique, diverse, some are super highly educated, master’s degrees, some just came out of high school, and they’re just great human beings that are doing crazy stuff. And, yeah, there’s love for them. [crosstalk 00:13:55].David King:Yeah. Well, I’ll tell you the story but it comes from a perspective of respect because I’ve been in sales before, I’ve door knocked. I’ve done the grind type thing. But when you’re in sales, the sales are the frontline. Absolutely of have any sales organization. But they are also very needy. They’re kind of individual business owners.Alec:Yeah, that’s a great way to look at it.David King:So I worked with loan officers for seven years and took 18 months away from mortgage and started working with real estate agents. And I was interviewing with Jeff Walsh with you, with Dan, and Jeff made the comment. He said, “We love that you’ve got seven years of mortgage experience, but we really like the fact that you’ve got 18 months, get your feet wet in the real estate-Alec:For sure.David King:… industry as well, and I just kind of chuckled that. It wasn’t a pre planned statement, but I just chuckled and said, “After 18 months of working with real estate agents, I never thought I’d be so happy to work with loan officers directly again.”Alec:I love it. I love it.David King:I mean, when you’re in sales, like I said, I say that in jest.Alec:Yeah, for sure.David King:Because that’s who I serve. I serve our loan officers. They serve real estate partners and much more. But yeah.Alec:All right, that was awesome background for people that don’t know you, know your history. This is kind of the meat I want to dive into. Branding. Personal branding. Marketing in a contemporary sense. Tons of buzzwords, tons of books on it. We were joking before we hit record on this, it’s five years plus of people just branding, branding, branding, branding, branding, branding, branding. And there’s a lot of validity behind that and that’s important to unpack and understand it. But there’s also a lot of confusion around it.David King:Sure.Alec:And so I think people miss identify what that really means, or have general confusion about what to do and so they get distracted maybe about, what really matters in it. And so I’d love for you to share a little bit of your perspective and then I’ll share some of mine too. And we can have a dialogue about it. And just, what does branding mean? And loan officers are hearing that word everywhere. What does it mean to you? And how do you see it in your job as the CMO? And just share some insight from that level because I think it will be helpful.David King:Yeah, so there’s a book, I think it’s called the Brand Gap. And it really dives into the concept of the fact that a brand is way more than your logo, your color palette. It really is kind of who you are. And I’ve used this example a million times. It’s one of my favorite TED Talks, third most watched TED Talk out there. World renowned Simon Sinek. The Golden Circle. Who? What? Why? And really, for me, that’s branding. That’s the best branding talk out there is from Simon Sinek, is really got to understand ultimately who you are. He said most companies can tell you what they do, how they do it. Very few companies are the companies that really truly get it right, is why they do what they do. And some companies define that in their mission statement, some companies define that other ways. But yeah that’s what I think when I think of corporate branding is really who are you as a company? More so than just your visual identity. Your style guide. That’s a small portion of branding-Alec:Style guide.David King:Yeah.Alec:For sure, brand book.David King:Yeah, brand book. And that’s not something that I can change or move the needle on dramatically. And who we are as a company is our founder, Anthony Hsieh.Alec:For sure.David King:And I see loanDepot and Anthony Hsieh as being synonymous.Alec:Yeah. I mean, it’s hard not to, he’s got a big voice in the industry. He’s out in front on a lot of stuff, especially on social media. And so, you can make the connection.David King:Yeah.Alec:But I love what you said and I want to unpack a little bit. A lot of loan officers tend to fall back to the how and the what? I provide home loans, I’m a five star service guy or girl. I give good rates. I have a lot of products. I close fast. All that stuff is the what and how surrounding their brand, which they’re not necessarily identifying, which is, the why. So I think that if you’re listening and you heard, David unpack that a little bit, it’s a reflective point for you. What is your why that is the center of how and what you’re doing? Because until somebody can connect to that, they don’t care how fast you can close a loan, or how good your product depth is. You haven’t identified it for him. You’re a commodity almost. So I think that’s a really core message. I don’t think people want to hear it very often.David King:You the second time, I sat down with Anthony, five, six months ago. We met for breakfast at a little restaurant. And he used the phrase several times throughout the 70, 80 minutes when I was with him, he kept on saying the phrase delight the customer that’s our goal or mission and so on. It really stuck out to me. And it’s not our mission statement. But it’s really Anthony’s desire to really delight the customer. How do you do that?Alec:Yeah, is hard? Yeah.David King:You equip loan officers with best in class tech, best marketing?Alec:Yeah. Best form and position. Yeah.David King:Yeah. So there’s so many variables to that to ultimately delight your customer, but that’s at the core of who we are. And that’s true or it should be true for every company out there. But when you dive into that significantly and what that means in every channel of our business and vertical of our business then it truly… The great companies figure that out in every aspect.Alec:I want to go back and talk about the brand concept again and come at from a different angle because I think it’d be helpful. And in our chat before I hit record, it’s so funny that we do the exact same thing with showcasing brands to people. So for those of you that don’t know or if you come to loanDepot, you’ve known because I’ve done it for a long time. There’s a certain slide at NewHire where I throw up big, recognizable corporate brand logos, just a logo, just a logo.David King:Sure.Alec:And then I asked the NewHire group to go through and share their emotional or one word response to what they’re seeing just right off the head. Don’t think about it, just what comes out of your mouth, and you do the same thing. And so when you’re doing it, what are you trying to showcase and explain when you’re doing that to a group?David King:I’m not sure if you do this or not, but I will usually show two logos within, either same industry or the same realm. And I’ll usually, depending on… I’ve done this maybe five times or so, in front of a small group, large group. And I want to draw out the emotional response that you get from a brand.Alec:So emotional response.David King:Emotional response.Alec:That’s a key word right there for people listening.David King:So I’ll sometimes use region specific logos-Alec:Of course.David King:… or I’ll pick two NFL teams.Alec:Yes. Where you know there’s emotional connection. Someone’s pissed.David King:Yeah. Or I’ll show like a McDonald’s versus a Ruth’s Chris. You get that [crosstalk 00:21:45], or the quality type thing. So I use that as an example of what branding is, and it’s the feeling that you get.Alec:Oh, so good.David King:Logo is a part of your identity-Alec:That’s right.David King:… but it’s more about the feeling that you get when you associate in your mind a particular brand. And so that’s really the goal of that exercise. Done it maybe four to six times or so. And it’s a fun exercise.Alec:It is. And if you’re listening and you’re a loan officer working on branding for yourself, this is a core message. I think a lot of people get caught up in, to your point, the brand guidelines, the color, the look, the logo, the tagline, and what they’re either missing or not paying attention to enough because those things aren’t bad, is just the underlying reality of, this becomes that emotional connection with the people that you’re talking to, your sphere of influence your community online, your local families, they’re going to have an emotional response to you, not to your tagline. Doesn’t invalidate the tagline. But if you miss focusing on the emotional thing, So one of the brands I do at NewHire is Amazon. It’s a massive brand. And by the way, can you picture the logo in your head.David King:Yeah.Alec:Okay, because I’m such a dumb-dumb sales guy.David King:Yeah. Took you a while to figure it out.Alec:The little-David King:A to Z.Alec:A to Z, I thought was a smile.David King:Yeah.Alec:I was such an idiot. Someone told that to me and I was like, “I’m dumb.”David King:You know the FedEx one right?Alec:No.David King:You don’t know the FedEx logo?Alec:No, I can picture it.David King:You’ll never look at it the same.Alec:Oh, why?David King:There’s a forward moving arrow.Alec:Yeah.David King:It’s cutout of the X, I believe.Alec:Okay.David King:And so next time you look at it, the only thing you’ll be able to see is that arrow.Alec:Is that arrow.David King:Like they are moving forward.Alec:This is why sales people are special.David King:Do you know what’s hidden in the loanDepot logo? Nothing. No, it’s the L on the D, of course, but no. I’m kidding.Alec:If you don’t know hidden there than we… Yeah, I can’t tell you it’s a secret. My point is, Amazon’s a well known brand, a lot of people are users of them for a variety of things. And the immediate reaction I get from most of the people in NewHire is this feeling of, it’s not euphoric, that’s too happy. But it’s a nice, warm. And what it is, is this expectation of this box, they’re getting delivered. I think it ties back into when we used to get snail mail and a package from somebody, and it ties back into all those emotions that a lot of people had. And I’m sure the next generations will experience it differently because it’s so used to it. But a lot of us, we didn’t get packages all the time. And now when we get them, it’s like, it connects to like an older emotion. I think that’s part of the power of the brand.David King:100%.Alec:Yeah.David King:And it comes… One of the things I talk about all the time is authenticity. So you can’t be something you’re not. Whether it’s a video, whether it’s your mission statement, it’s got to be true to who you are. Alec:And that’s hard for salespeople because a lot of us are chameleons. We want to show up in certain ways to get a deal. And I wrestled with this early in my career where, there’s a lot of different types of real estate agents. So I would try to be everybody for everybody.David King:Cater to your audience.Alec:Yeah. The social agents that wanted to go out and drink at three. I tried try to hang and like, “Oh, yeah, I love that.” Even though I hate that, like, I have no desire to do that at all. I didn’t.David King:Uh-huh (affirmative).Alec:Thank you. Maybe with certain people. But I’m not into small talk. So if you ever took the disc test, profile test, personal profile test.David King:I did not when I came on board at loanDepot.Alec:But long story short is I’m a D, which is… My best realtors were like, turn on the egg timer and be like, “You have two minutes to tell me why I should work with you. Let’s go.” The ones who want to spend four days hanging out and talking about our kids and our… I’m like, “You don’t care. I don’t care. Let’s move on.” But this is very personality oriented. And so you say be authentic. And, I think for a lot of salespeople that can be hard. We kind of mask ourselves. We show up as product experts, show up as, we have every tool, we’re ready to go, we have to always be perfect. I feel that very hard.David King:Yeah. You got to stay in your lane.Alec:So how does a loan officer do that? What advice would you give them?David King:Well, we were talking about this earlier. I think for the last probably seven years, my role has been to really elevate the overarching brand.Alec:So let’s talk about that for a second. Because I always end with letting whoever’s here give some insight down to the sales level. And I know you got some cool stuff to share. You just launched a really cool campaign for loanDepot.David King:NextX.Alec:NextX.David King:Yeah.Alec:Which is pretty epic. So explain what it is. Because I still think people are wondering, if someone’s listening who’s not part of the company or a past customer of ours, maybe they can get some insight here.David King:Yeah.Alec:What are we doing?David King:So again, before I joined loanDepot, but when I was having these conversations with Anthony, he put it on my radar pretty quickly that we’re coming up to a 10 year anniversary. And the size and scale that we’ve reached so far as an organization in 10 years is incredible. So he really wanted to celebrate that 10th anniversary in a unique way.Alec:It’s a big deal.David King:Part of what I do is events, love events.Alec:Yeah.David King:And so we started having the conversations. We’ll fly everyone to Orange County. We’ll have a big party celebration, and then we’re like, “Is that really honoring this achievement the best way possible?” Does it bring lift to the organization? We’re not going to spend all this money if it really is just a two hour party type thing.” So then we went back to the drawing board and maybe we’ll fly-Alec:Pockets.David King:The pockets. Six cities across the country and we’ll have these many parties, similar install type thing and we’ll all cheers, a glass of champagne toast type thing, because we knew that everyone couldn’t come out to Orange County, but is that really honoring this massive milestone the best we know how. So then we really just, again went back to the drawing board. And we wanted this to have impact to loanDepot, to its employees, its teammates. We said, “What’s the best way we can impact people’s lives?” And so then that’s when Anthony came up with the idea of the Sweepstakes. We can’t touch everything. “Would it be cool if I send you a nextX hat T-shirt?” “Sure.” Might end up in the trash. Let’s really figure out a way to impact people’s lives. And so that’s where we came up with the concept. Anthony, give him all the credit. We’ll honor 18 people, 10 customers 10 loanDepot employees. [crosstalk 00:28:43].Alec:I actually love the balance of that. That feels right to me.David King:We couldn’t have gotten here without both.Alec:Yeah, you need both.David King:Yeah. So let’s honor 10 customers, 10 employees. Nine customers and nine employees in a pretty impactful way. $10,000.Alec:Yeah, that’s a lot of money.David King:Yeah, every month starting in March, we’ll announce the winner all the way through December, the two grand prize winners in December, we’re going to pay off their mortgage. It’s so cool up to $250,000. Because I just talked about that you got to put the disclosure at the end of this video.Alec:Do we really?David King:Yeah.Alec:Yeah, you do. Okay. There’s a Sweepstakes, Mike. Don’t let me forget.David King:There you go. And so that we will impact-Alec:By the way, thanks for ruining the podcast.David King:You’re welcome. We will impact 18 people’s lives. And Anthony said this, we will change two people’s lives, one employee, one member of team loanDepot, and he kept on talking about when he was pitching me the idea that the next 10, the next 10, the next 10, he doesn’t want the first decade, the first 10 years to look like the next decade, the next 10 years and I just came up with the brand theme, nextX.Alec:So this is a cool pivot comment because you just hit the nail on the head here. Things change.David King:All the time.Alec:So from a branding and a marketing perspective, things evolve.David King:Yeah.Alec:So we’ve just come through 10 years, we’re going into another 10 years and things are going to change. And a lot of our loan people understand this, because a lot of them came through crisis in 2008 through 2010. And they know what change means. They’ve had to do it themselves.David King:Sure.Alec:So how do you see a brand’s evolution? How do you see loanDepot as brand evolution? What does that mean? And where does it go? Does it become so amorphous, you can’t control it? Or you just… What’s your insight into that space?David King:How much more hair did you have? 10 years ago?Alec:Yeah, I’ve had a big forehead for a long time.David King:How has life changed for you in 10 years? Seriously.Alec:Well, so it’s funny. I just spoke at my high school today. So I graduated in 2000. And so it’s 2020 and I got asked to come speak to around 50, 60 kids at the FBLA, which is the Future Business Leaders of America club. And it was a wild experience for me. Because I stood up on the little stage, had like a little speaking stage. And I looked at the kids there and I was like, “Oh, that used to be me.” I even went to the gym to see if they still had my trophies from the previous sports glory days. And, yeah, I mean, I’ve changed dramatically, from that little guy there to this guy now.David King:Do you think you could have, back then, said you were… I won’t out your age. Back then, 10 years ago.Alec:I’m 38. You can add it’s okay. I love myself.David King:So at 28 years old, do you think you could have really looked 10 years in the future and really known that you were sitting in this seat today and doing what you’re doing?Alec:No chance.David King:Same thing for businesses, it’s evolution, it’s iterative type process. And I don’t claim to know where our brand is going to be in 10 years. But I do know it’ll be different. And I talk about this all the time about companies do evolve, and you have to be open to change. And I’ve been through challenges in my life where I’ve been open to change and some experiences life where I’ve had blinders on, and I haven’t seen the bigger picture. So as our company evolves throughout the next 10 years, I think we just mature. If you look at a 10 year old kid and how much maturity happens when they’re 10 years old versus 20, there’s a lot of a lot of maturity that happens and growing up, I think it’ll be similar for us. So yeah, no idea. I will be the first to tell you when I don’t have the answer. But it will change, our voice will change. I think our core will still be the same as Anthony’s in the seat he’s in. He’s driving. He’s steering the ship, driving the ship.Alec:Yeah. He likes ship analogies.David King:There you go.Alec:A lot of boats. But I will say this too, for anybody who’s, if that feels too uncertain for people, our actions also dictate where we walk towards. There would be no Modern Lending Podcast, if there wasn’t 100 videos and 100 days from me. There would be no 100 videos and 100 days if there was no Modern Lending playbook for me. For a lot of our loan officers who are building their business, there would be no Alec in this business, if Dawn Abrams down in the coast didn’t take a chance on a 23 year old kid, and give him the opportunity to earn his referral business. And that wouldn’t have happened if I didn’t show up every freaking day and harass the guy relentlessly to work with me. Patience is such a key word here that I lack to the ends of the earth, like I have zero patience. But man, when you look back at all of it, it does start adding up, and action begets action. And the more you lean into it, the more we have control, or at least some influence on where the destination becomes.David King:I think to really build something special. Some other projects I’ve been at, at other companies, 12, 18, 24 month long projects in the marketing world, and patience is the key, but also knowing where you’re going. Alec:Vision.David King:Having that vision, which is passed down from leadership. But there’s not a brand out there today that I can think of that is a world renowned brand that happened overnight or even in five or 10 years.Alec:No doubt.David King:Patience is the key and being open to that change.Alec:So let’s do this. Let’s slightly pivot and I would love for you to start to share how you view branding and marketing and that little acronym thing you were talking to me about earlier, I think it’s going to have tremendous value for people. I think it’s going to be helpful. And I think this is the note taking time PS. So if you’re listening and you’re driving, pullover, so you can scratch some notes down somewhere, or just hit pause and it’ll be safe. This is good stuff, because I want people to hear it, have a chance to marinate on it, see how it can fit into what they’re striving for. I mean, we are talking about executing patients, having vision for what you want to create. And I think you have some good messaging on this.David King:Yeah. So I gave a 15 minute talk in front of a decent size group last year. And I really wanted to get across the two things, what is the brand and the power of storytelling. And I started by saying, not storytelling in the movie-making style or any of that, but storytelling with a business agenda, with a goal. How do you make more money? How do you get more leads? How do you get more referral partners?Alec:Yep. Get more influence? Yep.David King:Yeah. So I wrote down one night, I was like, I’ll come up with an acronym for brand and some key elements that I use in my day to day and the first one was to be brave. And I gave the example of Steve Jobs. When he first launched, you can probably pick any number of Steve Jobs projects, but especially the iPhone.Alec:Yeah, I almost jump on you, that’s the biggest thing that they’re known for, I mean that changed the whole face of the company.David King:Changed the face of the world.Alec:Yeah.David King:It really did. But the amount of probably hundreds of millions of dollars that they had to put in R&D for that. And I showed a clip of, I’m not sure if you’ve seen this. I showed a clip to make light of the situation but Steve Ballmer, ex CEO of Microsoft, he was interviewed on camera the same week that iPhone launched. It was all the buzz it was-Alec:Hug.David King:… everyone was talking about it. The Jesus phone they called it. Yeah, it was huge. And someone asked him about iPhone and he just laughed, he was like, “A phone that it’s not going to appeal to business customers because it doesn’t have a keyboard.”Alec:Yep.David King:Yeah.Alec:That’s what he believed.David King:And the entire 1,300 people, after they saw that clip of Steve Ballmer, knowing now 10, 12 years later, what the iPhone has done for business, for social and communication, it’s laughable. So my point was to be brave. And that looks different for every person. [crosstalk 00:37:25].Alec:Yeah, but I love it as a starting point. I love it as a starting point because it’s the truth. And by the way, people need to hear it more often. Because some of us and some of my team and some other loan officers out there have achieved a certain level of success that you should be proud of. And you’re not being brave anymore. And I see it and I can tell. I can tell when somebody is not being brave anymore where they’re just refusing to do the hard work anymore. And their business just starts to degrade. And I love that you’re starting with brave I think it’s important, I think it’s overlooked, and it’s a core aspect. David King:Right. And that means something different for me as a marketing professional than it does for a sales professional. It means something different but from a marketing perspective. The second one was our brand research, do your research, know your audience. Know who your customer is. Know what they want. Know what wakes them up every day. Do your research, know your audience. So important.Alec:Well, and massively important because we all should admit that we can’t be everything for everybody. And if we can spend the time to understand what kind of realtor professional do I want to work with? What kind of customer do I feel best lead to serve? And we really define that part of our audience, we can curate our business and really do what we need to do. I know there’s a lot of people that are pulled in so many different directions, trying to be everything for everybody, right? And if they just [inaudible 00:38:52] some research and really focused it in on and reverse engineered, they probably a lot happier and a lot more successful.David King:Yeah. I gave an example. Of what not to do.Alec:Oh yeah, I’m in.David King:J. C. Penney.Alec:Sorry, I’m laughing already. What did they do? What’s the story?David King:This was somewhere around 2014. Something like that. They wiped out their executive team, brought in a whole new team to really rethink who they were.Alec:Okay. What year was this?David King:14.Alec:14 ish.David King:2014. But a company that really has been around for more than 100 years. Right?Alec:Yeah.David King:So this was back when Best Buy started standing up little stores within a store type thing, right?Alec:Mm-hmm (affirmative).David King:And Best Buy’s killing it, I think. But they took the same model. One of the executives that came on board with J. C. Penney, was one of the guys that was pretty instrumental during the iPad and the iPhone launch. So a new Apple executive. We’re going to redefine who we are. They’re their clientele was about a 55 year old female. That was their key demographic. The demographic that, I don’t want to stereotype, but, they like coupons, they like sales. Type of thing.Alec:Yep. They’re your customer.David King:They came up with a new logo, they came up with a TV commercial, a whole brand. And they got rid of all sales, no more promotions, no more sales, little niche stores within a store, a high-end shopping experience type thing. They didn’t do the research, they probably did, but they overlooked it and they didn’t know who their key demographic, their audience, their customer was and their sales plummeted. And they almost went, I don’t know if they almost went out of business, but they had severe hardship and then they went back to the way it was. So do your research. That’s a really good example of how to do your research.Alec:Yeah. All right. So we have B.David King:B, R.Alec:R, research, right?David King:A, authentic. And we touched on this earlier. You can try and be an Alec Hanson and do 100 and videos in a 100 days, but if you’re not really comfortable in front of the camera, do something that works for you.Alec:I like that. I agree with that message.David King:Right. I mean, you’re good on camera. Not everyone is. And it takes baby steps. I think everyone can be but it’s not for everyone.Alec:It’s a developed skill. For sure.David King:It is. It is. So yeah, just really, truly be authentic to yourself. Understand what you’re good at, and lean in all the way on that.Alec:Yeah, I think authenticity can’t be underscored enough. I think it’s one of the biggest and most important ways to connect with humans to your why, if you bring your authentic why out? I’ll give a story. I got stories too. We actually hired this guy. And so I’m not going to name names but he was out on a recruiting trip to loanDepot. We fly people out. We hang out with them.David King:Sure.Alec:And when we sat down to dinner, his real passion started to come out of what he really wants to do. He came through the foster system. He’s personally fostering a lot of kids. He has a tremendous passion and heart, he wants to buy this facility to create a place where, once kids come out or graduate out or grow out of the foster system, they don’t have a job, they can come and they can get housed, and they can learn some kind of trade skill. And they can launch from this facility. And as he shared that to me, I looked at him I’m like, “Dude, I did my Facebook stalking before we had dinner. I looked you up? I looked you up on all the platforms. I had no clue. This is what turns you on. Like, this is why you get out of bed every day.” Why are these things not connected? I know in your head, every commission check is going to build this thing. Why is this not connected for the world to see?And by the way, it wasn’t just me, Dan was there and we were all leaning on this guy but, it was really incredible to watch because it’s starting to come together now and I’m seeing it now. And I’m inspired, his authentic self is really shining through, he’s not just a mortgage sales guy, he’s got a mission from the Lord and he’s going to go execute and it’s really cool. So I really encourage everybody on this authentic thing. Same thing with this girl in San Diego. She was listening to a lot of my talk on branding and she was like, it connected in a really cool way where she said, “What do I want to do when I retire? Well I want to help women and make them financially literate and financial fitness.” And, why am I waiting till I retire? Why? Why don’t you do this right now? And so she started put a curriculum together start finding other badass women, CPAs and financial planners and state planners and she’s put on all these workshops for women. It’s so awesome.And so I just think that finding your authentic self and letting it out and letting it connect and being a human, like a whole human, it changes the game.David King:I think it goes back to when I was telling my story of how I got into creative.Alec:Yeah.David King:Really the light bulb moment going off in my head where I found something that I was truly passionate about. I started my security company because again, I wanted to be my own boss. I want to make my own money and not work for the guy.Alec:The man.David King:The man. The guy.Alec:It’s the guy now, used to be the man, has now become the guy.David King:Yeah. But then truly found something that brought me joy and happiness. And I wanted to be authentic to what I wanted in life, and led me to where I am now.Alec:So we hit brave. We hit research. We hit authentic. What’s next?David King:North star.Alec:Go ahead, break it down.David King:Yeah. It goes back to the whole conversation around brand and who you are. And some people, like I said, maybe that’s defining your mission statement. Maybe it’s a purpose statement. Maybe it’s none of the above. But it really is, find that North star. Why do you do what you do? If you can actually put it in words, that will filter its way into your marketing.Alec:Yeah.David King:It just becomes all encompassing. No, I’ve seen it turn companies around when they can truly articulate why they do what they do. Whether it’s a mission statement, whether it’s a rebrand, whether it’s… Whatever it is, truly find that North star and define who you are as a company, why you do what you do?Alec:Yeah. Yeah, I think those two examples too. I was touching on already, they’ve connected and their why shining through. And it’s not just a mortgage anymore, it’s a purpose.David King:Right.Alec:Last.David King:Last one’s a little bit more tactical. So diversity.Alec:Okay.David King:Be diverse in your marketing efforts.Alec:Yeah. Yeah, no, this is really important.David King:The whole world of omnichannel now.Alec:Yeah.David King:Yeah. So not too much to dig in there. But that’s kind of a no brainer.Alec:No. And it is a lot to dig in there. Because, if you look how I got my business in 2003 when I started, it was 100% from real estate professionals, some from friends and family, but I was 23, so what? They’re never going to trust me. They shouldn’t trust me anyway. And for years, I got all my business from real estate professionals. I started to get some from my past customers because I started actually have some, which is good. But I was not diversified. That was it.David King:Sure.Alec:But today, fast forward, not only are real estate professional, still a great partnership to have, but there’s home builders totally different avenue for different people. There’s obviously our past customers, there’s direct to customer interaction and influence on social media and digital marketing. There’s direct to customer access through local marketing. You’ve got, at loanDepot, we can partner with HR companies and do employee benefit packages. We can partner with credit unions and have them broker… It goes on and on. And I think diversification is a huge way to insulate yourself from market swings and sanity, but it just takes a little bit of willingness to go get uncomfortable again and be brave.David King:Sure.Alec:And put yourself out there to grow those.David King:Right. Yeah. I think there’s, of course, those are not the only five things that I practice in branding, but that’s kind of wrapping it up into those five letters. Those are five big key elements that I think if you get those right, you’ll be on the right track. And five cornerstone pieces that I’ve used just in my marketing career.Alec:Awesome.David King:Yep.Alec:All right. So we’re running down. That was a huge gift to everybody else paying attention. So just acronym brand and how it works. So we already unpacked that, but is there anything else that you feel excited about, like to share, that the Salesforce out there, the leadership out there that’s listening should know about?David King:I think it all goes back to our nextX conversation and around the fact that there’s probably only one company out there, a mortgage company that is a household name. And that’s because they’ve spent hundreds of millions of dollars on marketing, consumer facing marketing.Alec:Oh, yeah.David King:I hear that all the time that no one’s heard of us. We’re in all 50 states. I think there’s a massive opportunity. And I think that’s part of why I’m here, is to really help us become just that trusted, known name in the mortgage industry. Lots of great companies out there. How do we uniquely position ourselves as a trusted advisor?Alec:There’s huge power in brand. I always describe it as a coin. One side of the coin is your company brand. And it needs to help you. And one side of the coin is you as a human being and your personal brand.David King:Yeah.Alec:And I’ve been at certain companies where the company side of the coin was not as strong, potentially. But I’ve also been part of countrywide and when that brand became a national household name over time, it was massively helpful for me as an originator to walk out there with that jersey on, and people would instantly Connect me to the power of that brand. And it matters. And you’re right, I think there’s a huge opportunity ahead for loanDepot to lean into that space and earn that national seat, it’s able.David King:Familiarity with customers when they see that brand, that logo, that name and they’ve heard of it. My neighbor used them, my aunt used them, the bigger we become, the more powerful we are. And there’s a bit of a snowball effect with that.Alec:So how long till that’s done? A couple of weeks?David King:Two months.Alec:Two months it’ll be handled.David King:I’ve been here for, six months [crosstalk 00:50:20].Alec:Two months. I had to be sure. I’m writing that down right now.David King:I do say that. But I also have a massive amount of respect that the work has been done in the first 10 years and I take nothing away. We’ve become the number two company. And I asked Anthony question I said, before I joined, I said, “You’ve already got, I mean, you’re the number two, non-bank lender out there. You’ve got a good thing going, why do you need me?” I said, “You don’t need me.” He laughs, he said, “The company doesn’t need me anymore.” Jokingly of course.Alec:Yeah, of course, I get it.David King:And so, we’ve got a good thing going and I’m massively being a member of this organization now. I’m massively proud of what came before me and couldn’t be more grateful. I would have assured here had that hard work not been done with people that are with the company now and some people that have left the company.Alec:Sure, sure.David King:Some hard work has been put into where we are now. And I don’t take that lightly because the brand is now my responsibility, under Anthony and Jeff’s leadership. So I don’t take that lightly. And, I don’t presume to think that I can give the company a new face type thing. No plastic surgery.Alec:Yeah.David King:Yeah, just let the heartbeat go.Alec:Yeah. So this is awesome. I want to make sure I say this in closing guys. Really, when you look at brand, taglines, color schemes, logos, all that’s has a place, it’s honored, respected. But really when you’re focusing on your brand and what you want to do, think about your heartbeat. Think about what makes you tick, and what emotions your brand is going to be perceived, and how are people going to experience it? And I think the more you play in that space, the closer you’re going to get to the actions and the results you want to drive in your life. I guess that’s right, one, two punch.David King:Agreed. Well said.Alec:All right, guys. So we’re wrapping up. Thank you very much. If you have value if you like this, if you don’t like this, don’t worry about it. But if you did, subscribe, like, share, spread the message. I appreciate you guys. We are out. David King:Peace.

Modern Lending Podcast | Mastermind

 We discuss what is going on in the mortgage industry and how mortgage companies and salespeople are adapting and thriving.

Your Snippet of this episode of the Modern Lending Podcast:

  • Brian  & Barry discusses in real-time what is happening in our industry right now.
  • We have a Stream-crasher you do not want to miss out on.
  • Find out what the pivot points in this new market
  • Community is now more than every is important to the mortgage professional

Episode Transcribe

Alec Hanson:All right everybody, we’re live, thank you guys for joining us, this is going to be a really, really fun conversation.

We are live on YouTube, on Facebook, and on LinkedIn, which is hard to do, you’ve got to apply, it’s all this complicated stuff. But, we’re hoping to bring a really authentic conversation to all of you today, and I’ve got a couple housekeeping things to address just to make sure everything syncs up. Thank you for joining us all over, this is amazing, man, and in this time of uncertainty, circling together and sharing information, and sharing intelligence, and sharing what we’re all doing is the best way to pull us all through this. So right now what I would love for you to do because these links just went live, please share them, please comment on them, please push them out to your community, and so we can actually get a real global conversation into how we’re handling this today.I’m going to introduce everybody that’s going to be on the call, and we’re going to kind of go through this, and I want to frame it up for a second and we actually have a stream crasher that I’m going to introduce in a minute. But while you guys are all joining, here’s the purpose of the call today, we really want to start at the top of what’s going on in our industry, and there’s nobody better, in my opinion, to bring on than Barry Habib, who is seeing real-time and dialoguing real-time with a lot of the leaders of our industries, and understanding what’s happening. So there was a letter you did, Barry, on the 26th and there’s some conversations that I know you and Brian are going to have, but man, let’s start at the top and really unpack, what is the Fed doing, what is our industry doing, how are the markets responding?And then after we get through that, and hopefully a lot of questions come in at that time, we’re going to come down one level from the industry into the mortgage space, what is the mortgage companies doing today to survive and thrive? And we have our very own COO, chief operating officer Tammy Richards on, and we’ll have a really robust conversation on what position are mortgage companies in? How are they adapting? How are they changing? How are they positioning themselves? And then as we kind of wrap down the conversation, my boy Brian Covey and I are going to talk really down to the loan officer, to the sales level of how are we adapting?Man, we can’t go to open houses anymore, we can’t go visit our realtor partners anymore, we’re hosting virtual happy hours, all the crazy stuff, so how are salespeople adapting and thriving and what are some of the best things happening there? And we just hope for a really robust conversation today, so we’re already over a couple hundred people, I see almost 500 people on most of our channels, so this is going to be a really exciting time. So to kick us off, we do have a stream crasher, and you’ve got to make some room when somebody kind of muscles in, and our very own CEO, Anthony Hsieh, asked to join from his house because we’re all kind of buckled down, to just kind of add some comments and kind of kick-off this call. So, this is going to be a really great time, please ask your questions, all of us can see your questions as they come in, so do not be afraid. We’ll dive on as many as we can, and let’s get ready to rock and roll, so on that, I’d like to welcome Mr. Anthony Hsieh to the field.Anthony Hsieh:Hey, how’s everybody, I’m just excited now to talk because you don’t see anybody anymore, so when I found out that you guys were having this get together, I pulled some rank and decided to muscle in, so here I am. Good to see you Barry, hey, by the way, everybody, Barry and I are going to have a pretty interesting conversation about the state of the industry and where we’re at, and what’s happening to government, what’s happened to the world. I think it will be really interesting, I look forward to that discussion with you, Barry. Wound down to that, I think it’s going to be sometime next week, but anyways, hey let’s meet everybody and just wanted to say hello.Alec Hanson:I’m putting some comments up there Anthony, so people are obviously excited to see your face, they’re commenting on the social feeds, so it’s a good time, I appreciate you being on and I know you’ll be here and hanging out with us as long as you can to answer questions and participate. So, thank you very much. All right, Mr. Brian Covey, let’s kick it over to you and let you kind of start dialoguing with Barry, and let’s kind of unpack what’s happening in this crazy industry.Brian Covey:Yeah, let’s do it. Well, most everybody, I’m not going to assume you all know everything Barry’s done, but Barry, we just want to publicly thank you for your leadership during this time, and you have really stepped out in front and that’s what leaders do, [inaudible 00:05:45] we thank you as an industry for how you’ve helped navigate and we know you’re going to be one of the most influential people helping to just provide clarity during some uncertain times. So, for those of you that don’t know Barry, I would be surprised, you’ve been living under a rock probably. But, Barry is one of the most diverse people I know in accomplishment, so I have a few here I just thought I would read off, just to give you context of where Barry’s expertise and everything comes from.He’s been on CNBC lately, you’ve seen him there, you’ve seen him on Fox, he’s the CEO of MBS Highway, which all of us in the mortgage industry should be following along, gives us great insights there. This one’s pretty cool, I love this, two-time winner of the Crystal Ball award, which we would all love to have that Crystal Ball right now, and you’ve also had Mortgage Professional of the Year, by National Mortgage Professional Magazine, and accomplishments go on and on, but what I loved, and you’re a dear friend of mine is, you actually personally produced over $2 billion dollars in originated loans. So you understand what originators and leaders are going through today and you’ve led teams, and you’ve really been in the space. Not only that, but we love you Rock of Ages show, so as a musician, you’ve got this diverse side of you as well that some people may not know that.But I love just your caring heart, and how you continue to give to this industry and, Barry, we’re glad to have you here.Alec Hanson:Muted. You’ve got your mute, Barry. Barry, you’re muted.Brian Covey:Oh, you’re muted.Alec Hanson:I know, but that was the responsible thing to stay muted, I’m sure what you said was eloquent and amazing.Barry Habib:So, I’m sorry, but thank you, Brian, and thanks everyone, it’s an honor to be here with all of you, Anthony, what an honor to be on with you, as well. So, thanks for all the good that you folks are always doing, Alec, your show is always great and I watch it, and I think you’re such a source of leadership and information for us too, so thank you.Alec Hanson:Yeah.Brian Covey:Well, let’s jump into it because I know everybody joined today and they’re hoping to learn some things, get some insights from you. So we were talking the other day about the Fed moves, and you’ve obviously written a fantastic article, you did a video around it that helped a lot of us just understand what’s happening. So, do you mind breaking that down a little bit, of what really happened?Barry Habib:Yeah, so we’ll go kind of quick, and the Fed is very well intended and very smart, I met Jay Powell, I mean, just what a great guy and what was occurring was this, what the Fed had wanted very much to stabilize the mortgage markets, and they felt that by buying mortgage-backed securities, it would accomplish two things, one is, first of all, they were absorbing a lot of the need for liquidity. So, REITs were dumping mortgage funds just to raise cash, remember, when the stock market was really taking it on the chin, that caused margin calls in the stock market, they had to raise cash so they were selling everything and some of the things they were selling were mortgage bonds.And knowing that we needed a stable mortgage environment, the Fed said, “Hey, we’re going to come in, we’re going to keep that stable, and then you know what we’re going to try and do? We’re going to try and keep rates low.” Not realizing that the industry was already at a maximum capacity issue, so it wasn’t reflective in rates. But the Fed did something they had never, ever, ever done before and they brought out the bazooka, and they started buying $40 billion dollars a day in mortgage bonds, which it completely achieved the objective of causing mortgage bond prices to rise, but it wasn’t being reflected in lower rates because of capacity. The problem with that is that when you have a transaction and you’re locking the loan for the customer, it’s really not a lock, it’s just a promise to lock that loan. So the company, the bank, the lender, absorbs the indecision in between the volatility until it’s closed where they can finally deliver that. Now, in between what they need to do is, protect themselves, so you want to protect yourself from mortgage bonds getting worse by essentially shorting something like mortgage bonds so that you’d profit on that and you’d offset each other. When mortgage bonds get better, though, the problem is that your short position, because you were banking on them getting worse, now your short position, you’re on the wrong side of the bet, you’re losing enormous amounts of money. Now, you have a counter effect of that in that you’ll deliver that loan and make more on it, but the problem is, is timing and what we saw was that we saw the broker-dealers saying, “You’re too short, I need your money right now.”And the amount of money in margin calls that was going out was dangerous, it was painful and dangerous eight-figure checks, so we got the Fed, thanks to all of your efforts. Thanks to people heeding this and Steve Liesman and I, we were up till 11:00 at night Sunday night and got the Fed just Monday to turn around and stabilize the markets by buying about half of what they were to absorb the liquidity, keep it stable. But they’re watching MBS securities just like we are and we went from this to kind of this move, and we are thankfully good, but there are other issues that we still have to worry about.Alec Hanson:Barry, it’s incredible for me that your letter can make that kind of an impact across the country, I mean, it’s just really incredibly cool.Barry Habib:Well, that’s very nice of you to say, but it would have gone nowhere without you guys, without real heroes like Peter Boockvar, and John Mauldin, and Steve Liesman and everybody in the media, really, it went viral all over social media, so it was all you folks that did that. So they heard it, and they’re smart and they adjusted it, and that was an easy fix-Alec Hanson:Yeah, just like Anthony put a message out on LinkedIn this morning, that we are all in the same boat, and we all need to row in the same direction and pull on the same side of the rope and we can do amazing things in industry, but we are definitely in it together.Barry Habib:Yes.Brian Covey:100%, yeah, the #bettertogether, you’ll probably see, but we all need each other, and the question a lot of us are getting right now, that Barry, you’ve seen, is around forbearance. We’re seeing this on the news, we’re getting asked questions, so I hope you can kind of break that down because that is, right now a source of tension that we’re all trying to sort through.Barry Habib:Well, when there’s a word that’s hard to spell, it’s also hard to understand sometimes, right?Alec Hanson:True.Barry Habib:Here’s the thing with forbearance is that just like anything, was it Ronald Reagan who said that some of the most dangerous words you’ll hear is, “I’m from the government and I’m here to help.” So the government is really trying, with good intentions here, to want to do something to help those in need, and let’s face it, we’ve seen just between last weeks number and this weeks number, approximately 10 million people now have filed for unemployment benefits, and you know it’s going to grow. So, that’s a lot, our workforce is 160 million people so we’ve already shed 10 million of those jobs, this puts us in a position where of course, we want to stabilize things. But what the government wanted to say was, “Hey, listen, if you’ve got a mortgage payment and if you’re affected, well, then you don’t have to make your mortgage payment for a period of time, it’s not free, it’s not forgiven.” So the government botched the first step, which was A, the messaging because so many people out there, they are assuming that this is a free lunch.They don’t recognize that there is no financial benefit, in other words, your balance sheet, your net worth does not change because of this, you owe this money whether you pay it after the forbearance, whether you do a modification, whether you do an increased payment or whether it’s collected when you sell a refinance, you owe it. So the only thing you’re literally saving is the fact that what interest it might earn in your checking account instead of in the mortgage servicers account. So for maybe $20 worth of benefit in interest, you’re literally jeopardizing the housing industry and it’s that serious. It could collapse, and I am fearful that the abuses of what we’re seeing here is everyone is saying, “Oh, it’s free, let me all do it.” And it’s creating a problem with services who can’t handle this, it’s also creating an issue with first payments, which if you close on your loan and you don’t make that first payment, the loan at the present time is not a salable loan.Alec Hanson:Yeah, people are not understanding that, that’s a wonderful comment, Barry, can you hit it again because I want people to hear it and be able to explain to their customers, if they don’t make their first payment, it’s going to be a dramatic issue for the industry.Barry Habib:Well because think about it, if you were lending your own money, and we know that eventually, you’ll run out of money, so what you have to do is you’ll close it, you’ll fund it with your money, in this case, let’s say you’ve got a credit line to do it, that’s what a warehouse line does. So you use that facility to close the loan and fund it, and then you collect the documentation in proper order so that you could get rid of it, replenish your supply, and lend more people money. So that’s how you keep turning that same amount of credit line over and over to help more families, if you can’t sell it and you can’t get it off your books, you eventually run out of space so you can’t help any more families. So imagine that person who wants to buy a home or needs to get a mortgage because that other person’s already purchased a new home, it has a terrible effect.So what the government has done here is they’ve botched the messaging because they haven’t explained that this is a huge issue which is not forgiveness, it’s just postponement with no financial benefit. Secondarily, they allowed it to be a free for all, and what they said was, “All you have to do is affirm you’ve been affected.” What does that mean? What they should have done is like we did in the financial crisis, you have to prove hardship, “I lost my job.” Now, that’ll be a lot of people to handle anyway, but if you mitigated by 80% less people with forbearance, it becomes more manageable, and it would help them sell because, guys, what we’re trying to do is tap into a facility that’s going to be created to allow servicers to access money to pay the investor because that’s what they have to do.If you mitigated by the amount of people who don’t need it and get rid of that portion of it, you then have to have a smaller and more manageable facility, so they’re hurting themselves. You know what this reminds me of, guys? Sorry, just one more point?Alec Hanson:Yeah, please.Barry Habib:Physicians in their sincere good-intentioned effort to help people who are in pain, started to prescribe opioids and what run into? The cure was much worse than the problem because the opioid addiction became really bad, and this is kind of analogous to this. So we have to be thoughtful and mindful as we come out with … We have to balance urgency with thoughtfulness, and I see the urgency, but so far we were able to avoid the lack of thought from the Feds point of view, I don’t blame the Fed. They just weren’t aware of the way the plumbing works, [crosstalk 00:16:20] now we need the treasury, this is a Treasury Department issue. Steven Mnuchin has the keys to this, and legislature to say, “You have to prove that you have received hardship.” If we fix those two, the place we’re going to, guys, which we can talk about is a really much better place and it’s a great place.Brian Covey:Yeah, and I think you bring up a good point, sometimes these moves and the unintended consequences that were not thought through there and now for all of us, we’re having to pivot and shift, and the question I’m getting a lot, Barry, I’m sure you are is, “How long do we stay in this mode that we’re in today, and just kind of what does this look like for us as we move forward?”Barry Habib:So the way I like to view this, guys, is this is a bridge we have to cross, and the first question is, how long does this virus last? So there’s a lot of hope with hydroxychloroquine, it’s in a drug that’s out there right now for malaria called Plaquenil and you combine that with azithromycin, and it has incredible anecdotal data, there are tests being conducted now, I talked to the Cleveland Clinic three times a day to Dr. Mike Roizen, who’s Mehmet Oz’s partner and as of this morning I got an update from him that he says potentially next week we should get some good data but we have to use caution because there is drug interactions and it’s recommended that you consider doing an EKG beforehand because you have to measure the time it takes your heart to restart to know that this is safe for you. So this is not going to be an immediate or quick thing, it needs to be done carefully and cautiously, it’s something that we should be, like any drug, be cautious and consult our physician with.But it, to me, seems like the big benefit is you stop transmitting virus in a three to six-day period, which greatly reduces transmission and it gives us some sort of a weapon against this horrible, horrible virus that we now can’t seem to easily manage. And the cure for managing it, and of course, the preservation of life is so important, is causing our economy to go under incredible pain. So there’s also something else that’s something to look forward to, something happens with the sun’s energy, not temperature, but the energy within the sun because the proximity to the sun to where we are in the northern hemisphere, that starts to occur in April, which has the virus subside during that period of time. So we pray to God, we can’t get through this month fast enough, but it seems to me, to answer your question, and I apologize for it being a long answer, is that I think by May, we will have tools and we will have nature on our side that will help us to try and get our economy back to where we’re taking some steps forward.Brian Covey:Yeah, I think that’s the hope everybody’s kind of looking for is, we know April, not just from the health side of things, there’s some improvements, but we also know a lot of us have massive pipelines that start to move through and we get caught up in warehouse lines and all of those things that we’re all talking about, start to get to a better place when we get to May. So I love how those actually correlate together today and you shared that, and I love what we talked about the other day … Go ahead?Barry Habib:Brian, I just wanted to mention about [inaudible 00:19:17], this is where everybody who’s listening to this has to please, please think like a CEO, please like you are the CEO of your future here, and whenever we weigh things, there’s the short-term and then there’s the long-term, and what we have to understand and accept is that we’re going to go through some short-term pain. I’m sorry, I’m not going to sugarcoat this, this is going to suck, we’re going to go through some short-term pain, April’s going to be bad. But, if we go through the short-term pain, the long-term is so rewarding, so we have to think now, do not fall into the trap of thinking about the short-term. This is the period of time, it’s like a John F. Kennedy moment, you can’t say what [inaudible 00:20:00] for my company to preserve the long-term, and make no mistake, there’s no magic well. We all drink from the same well, every company out there is experiencing the same … I speak to every one of them, every CEO and we’re all in the same boat.Whether the timing of one is different than the other, we are all in this together, there is no difference.Brian Covey:Love the way you said that, and I think that brings us to, a lot of people are looking for opportunities today of what they can be doing because there’s things that we talked about that are outside of our control. But what are the things you would recognize as, what are the opportunities today?Barry Habib:Well-Alec Hanson:Real quick, [crosstalk 00:20:39].Barry Habib:… might want to add some comments too, right, Anthony? I’d love to get your take?Alec Hanson:Yep, I think we’ve got you, Anthony, good to see you again. Anthony? This is the joy of taking all the technology and moving it into our houses. Anthony, we can see you and we can hear you, if you can chat, can you hear us?Anthony Hsieh:For some reason, I’m not hearing you guys [crosstalk 00:21:11]-Alec Hanson:Well, we can hear you.Anthony Hsieh:Can you hear me?Alec Hanson:Oh, yeah.Anthony Hsieh:Okay, well, I can’t hear myself. So, Barry, those are all incredibly powerful explanations and comments, what I would add to everybody that is listening or watching this is, we’ve got to hunker down to get through this transition. There’s panic, there’s uncertainty, there’s fear, no doubt unemployment is going to spike, consumer behavior, once the health hazard is over, is a bit unpredictable. I personally do not believe there is going to be a big recovery, I think consumers are going to be fundamentally different going forward, but understand that there is a supply and demand curve for us mortgage professionals in the industry, and that is there is not enough capacity. From positions to capital, to warehouse lines, there’s just not enough going into this lower interest rate environment and this more than likely recession for our industry to support the demand.So whatever and whenever this new normal is, we’re on the right side of the supply and demand curve and that is really going to be really strong for us as an industry and this is why we all must pull together and we all need to become one community and show Americans and society that non-bank lending and mortgage professionals should be viewed differently than they have been since the ’80s and the ’90s and certainly through the last financial crisis. This is our time, everybody, to come out and pound our chest a little bit to say, “Hey, we do good and America needs us, and look what we’re doing.” The power of 50 plus percent market share, it’s heroic, it’s a lot of stuff, it’s hard. Every loan is still hard to do, even with all the technology, so anyways, I don’t want to steal the show, but I’m just really passionate about what we do together and the fact that we support 50 plus percent of the liquidity in this wonderful country of ours and we do good, and gosh darn it, I want a little credit for it, right?Alec Hanson:Awesome, Anthony, love your insight.Brian Covey:Well said.Alec Hanson:Thank you so much.Brian Covey:Awesome, you want to pivot back to … I love what Anthony was sharing there, I saw Barry was nodding his head, and I love the message, and you’re going to see that #bettertogether, I think it’s going to create its own movement there. But I would love to hear, Barry, you’re talking to a lot of people out there, and the opportunities sometimes we miss them when we get caught up in the noise in a lot of this change and adversity. So I’d just love to hear from you, what are the opportunities and how do people get engaged to where they can help and make a difference out there?Barry Habib:So the reality is this, and Brian, that’s great, and Anthony, those were great comments, and I think they blend beautifully into the fact that we are doing good, and this is a chance for us to really shine, you’re 100% right, Anthony. So, Brian, when you take a look at the reality, so the second-quarter, I expect our GDP, which was trending at about 2% to fall maybe negative 9% or 10%, I’m sorry that’ll be the first quarter number, the second-quarter number, I think that that will be really devastating, maybe down 35% or 40% GDP, which is really almost unprecedented. But I see a snapback in the third quarter and things will start to be better. Now, as far as housing goes, the demographics for housing are incredible, and when you think about this, if there were ever an argument for, “I want to be a homeowner and get out of my apartment building.” It’s fear of a virus, right?Alec Hanson:Yeah.Barry Habib:And it’s social distancing, so we are looking at models where we think that homeownership will increase after this. Now, employment will be one of the factors that we have to monitor because how quickly does employment come back? It won’t be instant because that restaurant who was employing 40 people has to spread tables out and maybe they hired 20 people, and so on and so on, and industries like the cruise industry and like big theater industries and things like that, they’re going to have a tough time. So we pray to God for all of them, and for all those people, but what we want to see is, we want to see that employment start to come back, and people aren’t going to be rushing to sell their homes. There’s already a lack of inventory, builders have built less homes, not more, but yet when you look at birthrates from the 1980s, you can’t change that and those birthrates continue to increase, so that means a flood of new people coming in that are going to either have an apartment that they live in or a home they live in and I think that the vast majority if you keep with statistics, they’ll want a home.So every metrics tells us that the housing market will have upside pressure, the drawdown that I think you’ll probably see an opportunity because I think home appreciation will take a hit. It’s my opinion that it takes a hit, some people are more optimistic, I, in this case, am a little more pessimistic than some of the other very respected colleagues, but I think it’s also short-term, which provides opportunity. I think that to the extent that you can if you purchased a home and remember that you don’t typically buy a home this week and sell it next week, that this is a great opportunity. I also think for many people who ask us, “What should I do with my stock portfolio?” Listen, I think the stock valuations potentially have a little bit more room to the downside as this news comes out, but I also think that long-term, these provide entry points that are a great opportunity.And I think that right now’s a good time as an opportunity to look at your own personal situation and those that are your clients that you could serve and say, “Can I refinance, not because I want to save a Rate and Term so I can save somebody $100 a month of $200.” Okay, that’s okay, but the real magic happens when you wipe out all their debts, use the equity that everybody has in their home now, while they have it, use it to wipe out debts. Use it to take out cash, give them a safety net, make them feel comfortable so they don’t have to liquidate their stocks at a 50% discount. Put them in a position to where you can do all of this and keep their payment where they’re loosening up $1500 to $2000 a month, instead of the government giving you a $1200 once, give them $2000 every month and then when this settles and when you’re comfortable, take that $1500 or $2000 and maybe apply it toward your mortgage and save 12 or 15 years of payments and pay for your kid’s college that way, pay for your retirement that way.Brian, to answer your question, these are the opportunities, and one more opportunity is the opportunity within you to really be a leader, to really soak up the knowledge, to use the social media platforms out there to get the knowledge out that everyone is thirsting for right now. What Alec’s doing here is helping people see what’s going on and this will not just end when this virus ends, Alec is establishing himself on a platform that people know that they can go to for a trusted source. You need to do that with your realtors, with your buyers, and your market, and the time that we have to do that is now amidst all the chaos, seeing the opportunity is the magic that creates tremendous wealth.Brian Covey:Oh, you nailed it there, and it allows that opportunity for us to become that next level of trusted advisors that you’ve talked about for a long time, and really, I can see our industry taking that shift to now, we really are advising people holistically and guiding them through. So I think we’re going to have a unique opportunity to serve the American people and serve them exceptionally well through this time. So, thank you, Barry, you have provided tremendous insights, and I know you’re going to have more of these, we appreciate you taking time to come on today and share this and just be the leader that you are for our industry. So, thank you.Barry Habib:Well, you guys are all leaders as well, and there’s a lot of leadership within every single one of you people listening. So, as Anthony has said, we are in this together, and we will get through this together, let’s protect the companies that are out there first but thank you guys, I’m always here for you if you need me.Alec Hanson:Thank you, Barry, so much. Guys, so I know that that was a lot of info, and I forgot to do this in the beginning because I got excited, but all of this is being recorded on YouTube for the future. So if you’re having streaming issues because right now more and more people are streaming and having problems just because everyone’s online. If you’re getting glitches on your own system, don’t worry, go back to YouTube, you can pull this thing up and watch the whole thing. So as we come down from the top of the industry into kind of the meat of what are mortgage companies doing? What are the changes happening with Fanny and Freddy? I heard these appraisals are being changes and VEOs and verification of employment is being changed, and we had to take all of our whole team and make them virtual in like a week. We’re so lucky to be led by Tammy Richards, she’s below, right here, we’re going to give a chance to kind of share what’s going on, but she’s our chief operating officer at Loan Depot.She’s responsible for our loan production, our underwriting, processing, funding, credit, closing, quality assurance, can you add more rocks? She’s carrying a mountain, she’s also heavily involved in our digital experience and what we’re doing to delight the customer. So, she’s had, wow, a lot of lending experience, I can’t read the actual date because it’s a lie because you’re too young for that. But Wells Fargo, Bank of America, Caliber, she’s a black belt in Six Sigma, and a brown belt in Tae Kwon Do, got that right?Tammy Richards:That’s right, that’s right.Alec Hanson:She’ll literally take you down if she needs to, so don’t mess with her, but, Tammy, thank you for coming on today to share your insight because people are nervous, they’re nervous that their loan isn’t going to go through, they’re nervous that there are changes happening. We’re watching the NON-QM market evaporate a little bit and people who thought that had a loan are not, and yet, the government’s putting a lot of liquidity into conventional conforming high-balance, and man, can you just share your perspective on how we navigated through going remote, how we’re navigating these changes, what are these changes and how are mortgage companies handling it across the country to provide our customers the services and the loans they want?Tammy Richards:Yeah, happy to, and the move to virtual and remote was a very interesting one, moving our 6,000 team members to remote was a challenge. I think setting up the systems, just everybody being able to be their own IT to set up everything and then virtually working with each other to be IT support to get our systems set up, that was tough. Also, having the kids home from school, and-Alec Hanson:I don’t want to talk about that.Tammy Richards:We need to figure that all out, somebody told me that they did an April Fools joke for their kids where they hid five Easter eggs, but told them they hid 15, and it kept them busy for a little while. I don’t know, but it’s just been pretty exciting, but it went smooth and seamless, it’s due to the tech that we had already built within our systems to be remote, and the foresight of Anthony to be able to make sure that we were a tech-forward company and were able to serve our customers virtually, so we’re up and we’re ready for business, and ready to support our customers. I-Alec Hanson:I know you’re not going to brag for yourself, but you did just execute a record-breaking month for the company, we served a lot of people, I think Anthony said almost 20,000 people, and we’re projecting even more in this month. I mean, your team, even remote, is going exceptional work and I know there’s a lot of people doing exceptional work in this industry, I also want to give a quick shout out, Tammy, because someone just sent me a note. I want to thank all of our realtor partners and all of our appraisal partners and title partners, and county recording people, and everybody that’s pulling on the same side of the rope right now. That, to me, is a true sign of the industry coming together, and I would be remiss if I did not thank them and recognize them because a lot are watching right now and commenting and they have the same concerns our customers do, “Please tell me you can keep funding my loans.” I was alive in 2008 and it didn’t go good. So, in that regard, Tammy, what’s going on there?Tammy Richards:Yeah, I’ve heard of notaries doing amazing things, so many people are helping us, the appraisers are doing amazing feats, I’ve seen drive-thru closings where somebody’s coming in their car to close the loan, the notaries are watching through the windows. There’s lots of creative ways, but I really do think that we’re here as those experts, to help our customers through in a human way. The virtual is one thing, but everybody needs each other to help each other through, and so how do we keep our customers safe and our partners safe, and still be able to serve the American people? I’m really proud, I’m really proud that we were able to lower people’s payments, we were able to help them pay their bills off and get excess to their equity and find a place to shelter in during this time, it’s amazing.Alec Hanson:Tammy, one thing I’d love for you to share because there is a little political movement around this, is digital closings, digital mortgages, where somebody can close their loan without the fear of human interaction. So online virtual notaries, all that stuff that we’ve been leaning into and almost being held back as an industry a little bit because certain counties weren’t ready for it, they didn’t want full digital closings, they still require wet signatures. And you’ve done a really good job over the last couple years since you helped launch the mello smartloan, to position us to execute the way a customer wants to be served. Well, now they want to be served digitally more than ever because there’s this whole pandemic going on. So maybe share how that technology’s working, what’s inhibiting it from being mass accepted because you’ve been a pioneer bringing that to the industry.Tammy Richards:Yeah, so the mello smartloan we rolled out in 2018 and we rolled out hybrid e-close and digital closings for people in all 50 states back in 2018, and we’ve been going it ever since. We didn’t really, and nobody could have anticipated a pandemic, but we were anticipating how customers wanted to be served, and customers were coming to us more and more digitally and online, and wanting to be able to be served from their homes and on their computers. And I pictured a day when we could all be closing our loans on a laptop or an iPad or phone, anywhere we want it to be, and my favorite place to close a loan, if I were closing my loan, would be at the beach, I would be at the beach closing my loan. But I do think that what we were doing as far as online digital applications, being able to digitally validate documentation, including income, asset and what the agencies do, the Day 1 Certainty, and also the loan advisor suite.All of that helped us to be able to be prepared and the digital smartloan, or mello smartloan that we rolled out, took it a little step further documenting credit, title, [crosstalk 00:37:24], appraisal in a digital way. But everybody on this call should be running dual AUS, run LP, run DU, see if you can get a PIW or an ACE waiver because nobody wants an appraiser to be coming into their house right now unless they have to have that. It would be so much better, but how about Fannie Mae and Freddie Mac stepping up and helping us with having drive-by appraisals available again, or desktop appraisals-Alec Hanson:Yeah, and Tammy, really unpack that because there are some people listening, not industry savvy, they’re maybe in the middle of a re-finance themselves, what does this mean, that they allow drive-bys now? What does this mean that we can do a desktop review? What’s the function of it?Tammy Richards:So, it’s still an appraiser doing the appraisal, but the drive-by review is the old 2055 form, and it’s actually a drive-by appraisal where there’s no interior inspection, and then that’s being allowed for Rate and Terms, and for purchases with Fannie and Freddie. [crosstalk 00:38:34] and USDA all stepped up and said it would be okay there too, so it’s really been great, Jumbo, it’s still kind of tough for appraisals required, there’s not alternatives out there on Jumbo. But for the appraisal alternatives that we have out there today, there’s a safe way to do appraisals and there’s a safe way for our appraisers, and there’s a safe way for our customers and for them to still be able to lower their payments, especially in this most important time. So, thank goodness Fannie and Freddie and everybody else are such great partners with us, but PIW and ACE is the best way to go, [crosstalk 00:39:12].Alec Hanson:I know, and they also did something with verification of employment, right? It gave us some more flexibility in the industry or us to be able to do that so that even though people are moving at home and working from different places, we can till serve the customer and close.Tammy Richards:Yeah, so verification of employment, they’re allowing written, but when they say written, it’s really an email verification of employment, that’s pretty cool, we wanted those before, but that written verification of employment alternative, or being able to use a pay stub or bank statement, to be able to have that bank statement with the direct deposit and most recently applied closest to the note date is something that you can use as a verification as well. So there’s some alternatives there, there were some other things that changed, including age of doc, I know everybody saw that and got a little bit worried about it, don’t be worried, it’s okay. We can still re-digitally validate, so if we’ve done income, asset, employment, we could just re-digitally validate that within the 60 days. If you need to get other documentation, customers can take a picture, customers can upload that into our portal, which our consumer portal is completely virtual.So customers can add digital documentation, even if we don’t have the digital source, by scanning the information in or giving us a picture of it. So there’s a lot of ways to go digital, I love that we have our online application everybody can put their information in online, but then operations needs to step up and use that digital information to make decisions on the loan without asking for more paper. So, if the AUS says that your digital validation is acceptable, you can use that, it saves you time and you can serve more customers, we don’t need to revalidate with paper. Papers are boring, papers are boring.Alec Hanson:Barry, did you have a comment you wanted to throw in? I saw you … I think you’re muted. Muted, yep. Still muted, still muted, my man and the best part is there was a comment earlier where someone was like, “Thank God I’m not the only one who speaks on these things while muted.” No, we’re all human, we’re all …Barry Habib:I’m trying to behave myself and make sure that I haven’t muted, but I just forget to turn it back on. So I wanted to just mention that I do have to run, yet another call, but I wanted to thank you guys, and is there any other final question that you might want me to answer before I have to jump?Alec Hanson:I think we hit all of them, the comments are pretty robust and so what I’ll do too at the end of this guys, is comb through this and try to pull a lot of the questions that are coming out and then feed those back to you, Barry, so they continue your missions of education. And here’s my encouragement for everyone right now as Barry steps out, guys, please follow MBS Highway, right there, go, go, get connected, there is such a wealth … It’s somewhere, there’s such a wealth [crosstalk 00:42:21].Barry Habib:Yeah, well you guys have a pretty good deal on that by the way, for people that are signing up like crazy, it’s Bedlam here signing up for it, but they’re paying $200 a month, your company has brought that down and subsidized it all the way down to I think it’s like $39 a month, something ridiculous, I don’t even know what it is, but it’s some really insignificant number, get on board, so, love you all.Alec Hanson:Keep it up, [crosstalk 00:42:44]-Barry Habib:Thank you, everyone.Tammy Richards:Thank you, Barry.Brian Covey:Thanks, Barry.Alec Hanson:All right, Tammy, there’s one thing I want to hit that I really want you to lean into because digital closings, the actual … Because the e-hybrid closing is an amazing experience, the customer has five, six, seven documents to sign, it’s not the three laying on the table, two hours of hand cramping, and we’ve rolled that out for a couple years now. But, we’ve been having some trouble getting counties to accept full E, I mean, can you walk through what’s going on there and maybe what the government’s doing and that world?Tammy Richards:Yeah, so there is legislation out in the Senate right now to allow E and remote notarization across all state, currently 42 states are allowing it, which is much better than what we had previous to this. So there’s an acceleration in allowing for the virtual closing, and more and more states are having government emergency orders to allow it. I know California, Colorado, and others definitely have been stepping up and allowing it by emergency order, due to the COVID issues. But we do have 42 states currently that can do remote notarization, and the Agency stepped up this week and gave us more information in regards to limited power of attorney and also remote online notarization and allowed for both of them.Alec Hanson:So, again, how does this functionally happen? If I’m going to utilize remote notarization, walk me through it, I’m a kindergartner, tell me how this works.Tammy Richards:Oh no, okay, you’re not a kindergartner, but I will walk you through.Alec Hanson:In my heart I am, never grow up.Tammy Richards:So, for the limited power of attorney, that one’s a pretty cool one, and I think it’s a good option because what it is, is a remote online notary gets on with the customer, and the customer signs the limited power of attorney specific to the transaction, allowing the title company or closing agent to sign on their behalf. They still go through all of the documents and acknowledge and say, “Yes, I understand, and understand the terms and conditions of the loan.” But they’re able to then have the title company wet sign those documents on their behalf as a power of attorney.Alec Hanson:So they could have a notary, like we are right now, digitally I can sign it and then they can go execute on my behalf for that transaction, and we don’t have to put ourselves at risk and have human interaction if that’s what we’re choosing to do?Tammy Richards:That’s right, that’s right, it’s still a human interaction from the title company or closing agent leading you through the transaction, but it’s virtual and no-touch, and the power of attorney could be signed electronically, so there’s no wet signature even though it’s a completely wet executed document transaction. So I think that that’s going to be the easiest one for anybody out there that’s trying to execute on some sort of virtual or E and they don’t have the hybrid-e or they don’t have another way of doing it. If you look at the limited power of attorney, that might be your first option, then also the remote online notarization, the interesting thing there is that that allows for the customer to go ahead and sign the transaction. They can sign it wet, and there’s virtual notarization where the notary is watching the signing and notarizing the documents, but you could also do full e-closing where it’s electronically signed all the way through including the note, and that is the one that has had the hardest time with legislation.We’ve done full E and we do do full E, we haven’t rolled it out in a broad way, we’ve been doing it from a beta perspective, but we hade done full e-closings, but I do think that the remote online notarization and the LPOA is going to give everybody in the industry the biggest headstart. What about those states that don’t have-Alec Hanson:Yeah, I’m actually getting several questions asking about what states accept this, what don’t, so I’m glad you’re going to jump on that.Tammy Richards:Yeah, so when we post this, if you want, we can give a link to show which states allow for it, but for those that don’t, there’s a lot of creative things happening to still have it be a safe closing. So, everybody can wear masks and gloves, obviously, there can be test stations to make sure that people that are interacting don’t have fevers or any other symptoms. But also, I’ve heard people dropping documents on the porch or the [crosstalk 00:47:31] and then people picking them up, having the conversation a very far distance apart, more than the six feet even, then doing Zoom while they sign the documents. So the notary and the customers are on Zoom, coming back out, putting them back on the stoop, obviously, using the gloves and masks, and having them notarized right there. So it’s still face-to-face, somewhat. But for those that don’t allow for remote notary or remote online notarization of any kind, there are still things that can be done in order for it to be a much more no-contact closing.Alec Hanson:That’s incredible. So, one question here, Tammy, as we wind down this part of the conversation, I view that our industry’s being fundamentally changed right in front of us, from how our employees work, from where they work, from what tools they use, to the experiences our customers have and will have executing mortgage docs and all that fun stuff. So I’d love for you to peer into your crystal ball a little bit, and knowing what you know on the tech platform you’re leading and developing, where is this thing going to go? And in the meantime, while it’s going there, are we going to be okay, you know what I mean?Tammy Richards:Yeah, so we’re going to be okay. I love-Alec Hanson:I knew the answer to that one, but I just wanted to hear you say it.Tammy Richards:I know, I love that song, Jo Jack … Who’s the singer that sings that song?Alec Hanson:Which one? You’re going to have to sing it now. We should bring Barry back on to sing.Tammy Richards:Oh, anyway, it talks about banana pancakes, which I get very happy about, so-Brian Covey:Jack Johnson?Tammy Richards:Jack Johnson, Better Together, we’re going to be better together, we really are and America needs their lenders to help them with lowering their payments, this is one of the most important times in American history where customers have needed us, and I know we’re not the first responders from a medical perspective. But we’re essential workers that are out there helping everybody in a very stressful time, so we’re going to be better and we are okay, and we’re better together. As far as my crystal ball is concerned, we’re going to have a lot more cool things coming out, we have a lot of stuff in beta right before this happened and all of a sudden, the remote notarization became the top of my technology-Alec Hanson:Wishlist? Yeah.Tammy Richards:Yeah, [inaudible 00:50:14]. So we’re actually sending out our information to everybody this week, and we’ve started doing remote online notarizations, and the LPOA notarization process. I’ve done so far this week, about 75 of them, so it hasn’t been a lot of my closings, but it’s been a big chunk. Next week, we’ll do a couple hundred, the following week we’re ramping up, the reason why is because the notaries have to get certified, and so we’re ramping up that notary strength while we’re doing this. That’s why I think the LPOA is going to be the easiest way for the industry, if a customer can’t wet sign, to use that might be your best option because that requires the least amount of capacity. But for my crystal ball, my crystal ball is going to say that more and more customers are going to be approved at time of application based on digital information. More customers are going to have surety the way that they’ve never had it before, and from an operation standpoint, will be able to have acceleration and more capacity due to be able to utilize the data that we have in a very dynamic way to clear conditions and to help with underwriting and to help with processing.And for those check the checker types tasks, we could use AI and other technologies to be able to streamline the operational process.Alec Hanson:Well, I don’t want to go too deep down the rabbit hole on this, Tammy, but you and I talked before about the reality that technology is going to curated in such a way that you’ve been pioneering to use optical character recognition, and some really cool features in the industry to automatically read documents, assess them. We’re already using the ones that auto-file them, and remove some human contact with those files as the technology kind of helps lift the job up above everybody. So it’s going to be amazing as this continues to come out.Tammy Richards:Yeah, we need to go E on everything and digital on everything, paper’s really boring, we shouldn’t use paper anymore, and data is really cool and it’s safe and it’s fun to use, too.Alec Hanson:So, Tammy, this question’s a little more somber, a little bit, but it’s important and I think from your position as a senior leader for the industry, there are some guidelines tightening up, and so loan officers are communicating those out in social media, they’re trying to get to their agents involved and it’s a phenomenon that we’re in reality of. Looking back a few weeks, or, I’ve lost track of all time, I feel like it’s been two months, it’s probably been like two days. But watching the NON-QM world evaporate to a degree, people thought they had loans that they don’t and we’re seeing this now on government loans and other things. Do you see this normalizing, do you see this being a temporary thing, do you see this being as maybe a new normal? What insight would you share?Tammy Richards:I think it will normalize, but right now we haven’t seen the end of a lot of changes, obviously, we saw the IRS closing, transcripts not being able to be received, needing to figure out alternatives to that, everybody knows … I want to just make sure, USDA, where transcripts are required, they do have documentation within the USDA guidelines that allows you to document, you’re able to receive the transcript and be able to move forward on those transactions, so I don’t want anybody worrying about holding back on their USDA loans for transcripts. Although another good thing on USDA might be to have the customers get an electronic transcript, to answer through the IRS because digital is pretty cool, but on Jumbos, they’re still coming up with some alternatives on that. It’s so in flux that there’s still going to be more changes coming and we’re good at change in this industry.But we need to give some peace of mind and comfort to our customers as we’re going through these transactions, to try to help them because we know and don’t know what’s on that other end where they need this transaction so much in order to be able to stay safe and stay sheltered in.Alec Hanson:Thank you, Tammy. Man, such good content, such good information, thank you for being a leader in the space and we just really appreciate you.Tammy Richards:Thank you, it was fun.Alec Hanson:Alrighty, [crosstalk 00:54:51].Brian Covey:Tammy’s getting all the comments and questions which is-Alec Hanson:I know, I know and now they bring on the two, I don’t know what we are, the pinch hitters, I don’t know, the closers, this is when everyone drops off the feed, by the way. This is great, we had thousands of people, now it’s going to be our wives. But I do want to have a further conversation with you, Brian, as we go down again from the industry with Barry and Anthony, to how are we handling the chaos in operations and how are we getting through this. To, man, salespeople today, our mortgage brethren have never had more roadblocks, hurdles, and opportunity at one time in one market because people forget, I mean, we lived through the mortgage crisis, and if you lived through that as an originator, you knew what it was like to pivot and change. You had no choice, yeah, Jessica, I’m still here, we had no choice.But at the same time, the mortgage industry as well as capital markets and stock markets and all that stuff, they were part of the problem that caused this thing, well, now we’re not part of the problem, we’re in the boat with everybody else trying our best to serve our customers, and our salespeople’s strategies have been dramatically impacted. They can’t go to open houses, they can’t go to their referral partners, they can’t go to the networking event-Brian Covey:Nobody’s out there.Alec Hanson:No one’s there, and so you’ve been a leader in this space, you’ve been communicating a ton with your team and the industry, just sharing market knowledge, what are salespeople doing today to pivot their business, and I don’t care what industry you’re in, I was talking to people that sell insurance, I was talking to people that sell electronics. We’re all fundamentally changed right now, and so give me your take on how you’re coaching people today, let’s open the conversation up on what you’re seeing with our salespeople?Brian Covey:Yeah, so we talk about this a lot, and I’ve had some really robust conversations lately, to your point, outside the industry, everybody’s being impacted and I’m finding those that are leaning and leveraging the tools, that it was like overnight, we needed to figure out how to go live on Zoom and we needed to figure out, “Well, how do I have a face-to-face conversation?” So if you’re holding out, this is your time and this is the wake-up call of you need to get in this game because that is one of the things I don’t think we’re going to see go back to what it was before. People are getting comfortable in this space of doing video, and we’ve seen some of our top originators do sales presentations to an entire group of real estate agents on a web call, and we’re sharing information back and forth.I’ve seen people lean in, I’ve seen the most collaboration, and those that are going to the next level are collaborating with financial planners, real estate agents, title companies, you’re bringing in experts, we brought in sales coaches. What I’ve found through this, Alec, is people are willing to give of their time, which is the most precious commodity that we all have, and people are willing to share just like Barry came on. So I would encourage you, this is the time to leverage your network and your friends to share what they know to impact yourself, and your team in a positive way, and we talked about this on the podcast you and I did is, the leader doesn’t have to know everything. But it is your job to bring resources and to collaborate to inspire, motivate, and educate your team on a daily basis, it’s a daily thing right now.Let’s be real, we have people showing up, like all of us, I had my middle son, Davis, was born in 2008, November, in the crisis, so you talk about what we learned from then to now, I’m so thankful for him and what we learned because now it’s time to go all-in, like all-in if you weren’t before.Alec Hanson:Yeah, I really want to add some commentary and just share some insight because you’re nailing it and this is something we all have to focus. Number one, we’ve done this before, and if you’re new to the industry and you haven’t gone through this before, find those people who have gone through it before, those people are going to be rocks in this market because they know what it takes. They’re ready, they’re flexible, and they’re going to be able to help kind of share their guidance with you, and I’ll give you an example, so for 13 years I own and have started a CrossFit gym, it started in my garage 13 years ago, and now we’re in an 11,000 square foot facility, tons of gear, tons of stuff, and we can’t operate the way we used to operate.So instead, we packaged up all our gear into individual packages and sent it all as home gear, and built home gyms for all of our members, the guy that runs the place goes live every morning at 6:00 with a workout and a warmup, and takes people through it and then we do Zoom workouts all day, and we’re equipping our members to do what they do and enjoy working out. And it’s brutal, but it’s a great example of a pivot, now as you’re a loan officer, and you can’t do what you used to do, here’s the greatest opportunity that I see, your ability as a mortgage professional, a sales professional, to foster and cultivate human connection, is modern sales and prospecting, period. And I’m watching it happen with loan officers hosting Zoom brokers previews, which is incredible because the realtors don’t have the pizza parlor to go to anymore or whatever it was, so they’re still like, “People still want to sell their house, life is still trying to move ahead.” And they’re hosting that.I’ve seen people host happy hours, book clubs online, I’ve seen people host wine tastings with the winemaker who’s trying to sell their wines, and they’ll come in and they’ll share how they made their wine and everyone will drink it and talk and have a good time. I’m seeing sales professionals create space for small businesses to get recognized and served, we all should know that small businesses are going to be affected in this. So I’ve watched originators find these small businesses, prop them up, share how the community can wrap around them, whether it’s take-out night on one night, or gift cards, or whatever it is, and this is the opportunity great salespeople have to lean into, is to foster human connection.Brian Covey:Dude, that’s it, creativity and innovation, those right now are your keys to success, what you shared, that’s creativity, we have more time, be creative and intentional with that time, but now, you’re going to innovate. This is the way we are now going to be able to actually see opportunities that we didn’t see before because we were in a pattern, and this pattern’s been interrupted and this is the time people are going to lean in and find opportunities. And on the other side of this is tremendous opportunity to serve and connect in a much higher and deeper way.Alec Hanson:Yeah, so I’m encouragement for all of you out there, whether you are a leader or salespeople, especially if you’re a leader, video is your friend, it is not your enemy, video is our human connection tool today, now more than ever before. So I’ve been leaning really heavily into my teams being like, “Guys, I want to see daily, weekly at a minimum, Zoom calls where everyone’s on camera, none of this turn the camera off and hide in your pajamas, get dressed up, get ready to work.” We’re trying to figure out new rhythms and new ways to operate and we’ve got to pull each other through this together, I mean, I love the better together thing from Anthony, not only as an industry but as leaders, it’s time to pull those people up and get it together. And if you’re a market-leading loan professional, now is your time, it’s really like, it is your time to step up and-Brian Covey:Yes, coach has put you in.Alec Hanson:Yeah, you are in, whether you wanted to be in or not, you are in, you are tapped in. So, Brian, I’d love for you to also share, what else are you seeing some of the best leaders and loan officers do in this time to step into this new normal?Brian Covey:Yeah, so I think as a leader, your frequency and ability to communicate, you mentioned video, and I would say the number one most powerful thing is that video, and you can do that to a mass group. But let’s not forget the human interaction and relationships that matter, and picking up the phone and calling people. While we may hesitate, we may think people are busy, I will tell you when I received some personal phone calls lately or just even messages that are audio. I think those are both stronger, video and audio messages are stronger than just a text message, my personal opinion on that.Alec Hanson:For sure, it’s more personalized.Brian Covey:Right? And I think doing those to individual people, I can’t tell you how that made me feel, of people that have reached out and so, intentionally every day, I’m trying to reach out between five and 10 people on my team and not on my team today that are just in my life, that I care about, that I want to let them know that, “I’m thinking about you.” And I’m sharing from what I have learned on a podcast or I have picked in a YouTube motivational video somebody posted on Instagram. And what I want to try to do is be a beacon of light in that lighthouse of, everybody that I come in contact with that day as a leader, I’m going to inspire them and I’m going to give them a message of hope that it might be the only thing that day that really comes in. So don’t miss that opportunity when you feel that call and you have somebody come across your brain, reach out, that’s your cue and I found just listening to that inner voice of, “Reach out to people and be human.”The last thing I would tell you, Alec, is this, is I have found in seasons like this, this is where leaders go and double, triple down on their own personal development and get real about where you need to go because your ability to grow your capacity will mean the difference between how you can impact your team on a level three or four, or can you impact them up at an eight, nine or 10 level? So, leaders are going to step up and leader and if you’re in that role, you need to lead.Alec Hanson:Now’s the time. I also want to get really tactical for a loan officer right now, in these times it can be stagnating, frustrating, you’ve got a new life around you, kids laying on top of you, you’ve got a lot of stuff to manage, and a real tactical just daily best practice can be going through your CRM, pulling up five names a day, making sure you’re connected with them on all your social channels and send them all a personal video text message that just says, “Hey, in this turmoil, in this market craziness, I’ve got your back, if you have questions, if you have concerns, if you think maybe now’s the time to refinance, if you want real truth about the industry, I’m here for you, call me any time.”That personal, one-to-one message that says, “I’m thinking about you.” Is so meaningful right now to people that are feeling disconnected, who can’t go to happy hours and social times, and I know that’s really granular and tactical and right at the street level. But I feel like people aren’t doing it, and I feel too, people are putting out mass videos, which has a wonderful role in the industry and I want people to continue to go live, but then they’re forgetting to go personal and deep and write to the people too.Brian Covey:It’s both, yeah, it’s not either/or, right? It’s not an either/or there, and what we’ve shared with our group is, there are opportunities, you just have to be aware of them, and by having more conversations, it actually makes you more aware of your customer’s needs and you get to hear from them because too many times we think, “Okay, rates have gone up on refinance transactions.” And you’re thinking, “Well, nobody’s refinancing.” Right? And you get in that mindset, and so you have to break that mindset and move into a point you can serve, and the other thing I was going to share with you, Alec, this is for leaders, I was actually talking to someone this morning, all of our companies have gone through different changes. The industry’s made changes, there will continue to be changes, as a leader, the sooner and more frequent you can communicate those changes, how they impact the business and be educated about what’s happening.Whether it’s the Fed or government FICO changes, or why rates are moving this way versus that way, why did 9QM go away? All of these things, I’ve seen some leaders, and some have reached to me, that are afraid to have those conversations. If you’re a leader today, I implore you in saying, guys, you’ve got to communicate with your team, wherever you are, and share your company’s message as to why each company, channel, whatever, why decisions are being made because a lot of us are in this together, and many times we just think, “It’s just me, the sky is falling.” And as a leader, confront those opportunities to have conversations.Alec Hanson:So, guys out there, we’ve gone over an hour, I’m really grateful for everybody that tuned in, that commented, that questioned, that added to the conversation, Tammy, I’m going to add you back in just to say goodbye to everybody. But I want to leave it with this, our greatest opportunity as an industry and as individual salespeople, is to lean into the change and be a force of positivity through the chaos and uncertainty. That to me has never rung more true than it does right now as we’re managing all of this uncertainty, all this fear, all of this change, and all this hardship. I mean, let’s be honest, our whole world is impacted, I had a conversation with my six-year-old daughter as we took a drive yesterday to get out of the house who said, “Daddy, has this ever happened before?” And I said, “No, this is a defining moment in the world and the United State’s history, we are living in it right now.” And we have a chance to be a positive light in it, and a pillar for the entire United States economy as we help people with their mortgage transactions.And that to me is an incredible blessing I’m very thankful for, so Brian, Tammy, any finale words?Tammy Richards:Just thank you, it was fun visiting with everybody, we’ll visit with you again. It was great, Loan Depot was able to serve over 20,000 in March, and we’ll do over that in April, we’re here in full-force, virtual but human, to serve everybody.Brian Covey:Oh, I love that. Yeah, Alec, I would just say this is a time for all of us to stabilize and take of your friends and family, and just love on other people in a way that people are going to need us to support them through this. All of us will get impacted in some way, and so just be ready for that and lift each other up every day.Alec Hanson:All right, everybody, stay safe, God bless, take care and we’ll see you online again sometime soon.Tammy Richards:Bye.Brian Covey:See you.

Modern Lending Podcast | Brian Covey

Alec has Brian Covey, one of the Southeast’s top mortgage professionals and Vice President of Regional Production for TN, AL, MS and LA Sales Teams. They Talk about what it takes to be a modern leader and going all in on their teams.

Your snippet of this episode of the Modern Lending Podcast:

  • Nothing that is substantial comes overnight.
  • Focus needs to shift to making real human connections over digital means.
  • What if you didn’t have to do it all yourself?
  • Results should lead your search for coaches; even the best have coaches.

Episode Transcribe

Alec:What’s up, Modern Lending Podcasters.

Get ready, buckle up, episode six is dropping right now with my boy Brian Covey.

Look, we’re going to unpack what it’s like to be a professional soccer player, what it’s like to go all in on social media. I mean, this guy’s got 60-something-thousand followers on Instagram, almost 30,000 followers on LinkedIn. And more importantly, what it’s like to be a contemporary modern leader. With all the changes happening in our industry that all of our loan professionals are dealing with, trust me, if you are a leader in the space, you’re dealing with massive change too. So, lets unpack it. Let’s not wait any longer. Let’s bring on Brian Covey.All right, ladies and gentlemen, here we are. Brian Covey in the studio, in the house, in the flesh.Brian:We’re here.Alec:This is really happening right now.Brian:Yeah, man.Alec:Man, I’m so intimidated by your muscles. I know, it’s just, you’ve been crushing the morning workouts, I’ve been following you on the Gram. I need to get back, I need to get strong.Brian:I was lifting out there, you have the setup. So, I had to get some reps in.Alec:For the listeners, there’s a pull up rig outside of our office, so we’re maniacs here. Crossfit-ers and insanity. But look man, I’m pumped to talk to you. Because there’s been a lot of cool themes that have been on the different episodes of the Modern Lending Podcast. Where you have a unique viewpoint into the industry, is as a contemporary leader who has grown up in the industry to a degree, and now is facing the modern age. Leading a tremendous team, and I’ll let you kind of break that down for everybody listening. But man, it’s going to be really fun to get into the meat of what is modern leadership in lending.Brian:Yeah.Alec:That’s going to be a fascinating topic, there’s a bunch of people out there who listen to this, who are looking at leaders, wanting to be leaders, are leaders. And there’s unpacking all of the … I mean, we talk about the change for our loan originators and it’s massive, what they’re having to deal with. But it’s also massively changing for the leaders.Brian:100%.Alec:Okay. So, let’s go back.Brian:Okay.Alec:Before mortgage, what were you doing with your life?Brian:Playing soccer, playing in a band, living the life.Alec:Okay. Hold on, but you say playing soccer, what does playing soccer mean? Because I played soccer too. What does playing soccer mean?Brian:I was the guy that grew up and played competitively through college, played a little bit professionally, that was my dream. Alec:Oh, a little bit professionally. Just a little bit in there, a little bit. Wait. Where? What does that mean? I don’t know.Brian:In Nashville. So, it’s kind of like you have MLS and all that going on now. So, I was one of those guys.Alec:What was your position?Brian:Goal keeper.Alec:Keeper.Brian:Second shortest, maybe the shortest goal keeper in the league. Alec:Everyone on YouTube, everyone’s going on the YouTube channel now to be like, “How tall is this guy?”Brian:Claim to fame.Alec:Dude, that’s epic.Brian:Yeah. Yeah, be the short guy out there, you’ll get a lot of attention.Alec:So, the soccer career winded down.Brian:Yeah.Alec:And what’d you do?Brian:Yeah, so I was finishing up school. I had left to go play, so the draft took me out, went and played a little bit. Came back, finished my degree.Alec:Nice.Brian:And then realized okay, I need to get a real job that actually pays the bills.Alec:I love professional athletes who are like, “I got to do something else.”Brian:Yeah.Alec:It’s part of the life though, it’s part of the cycle.Brian:Yeah.Alec:So, what’d you do?Brian:It was time. So, I’d actually met now my wife, Nicole, who you’ve met. And I decided I need to get a real job because I need to impress her father. Right? I need to propose, this has got to work.Alec:Ooh. Impress the father.Brian:Soccer wasn’t going to do it.Alec:Yeah, yeah.Brian:So, I saw friends going out and they’re in finance. I had a lot of my friends’ dads that were in business and they were in capital markets and working for banks. And I thought okay, well I liked economics, I like finance, I like all these things here. What do I go do? And I literally showed up to the job fair, and being an athlete you walk through the job fair and you realize, “Okay-“Alec:Oh my gosh.Brian:Oh man, these guys are here. Wells Fargo Financial Recruiter there, he’s like, “We hire athletes, we hire people that are competitive. We bonus you.” I’m like, “This is great, I can compete.”Alec:”Bonuses sound good, I like bonuses.”Brian:I was like, “What’s this all about?” They’re like, “Don’t worry, we’ll train you, we’ll teach you.” So, that was my introduction into the business.Alec:So, there’s proof that there’s life outside of Wells. You survived.Brian:I did it 13 years.Alec:13 years, you actually are semi-competent, congratulations.Brian:Yes.Alec:That’s amazing.Brian:Yes. Bootcamp.Alec:Bootcamp.Brian:Yeah.Alec:After Wells, what’d you do?Brian:Went over to Movement Mortgage, had been introduced to those guys. And I knew, I could see the shift that was happening and I knew I needed to get out of the bank culture. And for me to really grow and expand, so I connected up with those guys. I actually had one of the managers there recruit me to be their manager, which is always fascinating. He said, “Hey, come join our team.”Alec:[inaudible 00:04:28] in a minute. Yeah, that’s awesome.Brian:Yeah, that was pretty cool. And had a great run with those guys, really enjoyed it. But it got me out of the bank and introduced me to more independent lending and just what was happening there and that was a cool journey.Alec:Fast forward a little bit, give everybody who’s listening kind of your scope of management today. Let them understand kind of what your chess board looks like.Brian:Man, we’re growing fast. So, you ask me today and what it’ll be in the future will be crazy.Alec:Yeah, when this actually comes out and posted, it’ll be different.Brian:When it comes out. So, today our team is about 100 originators, and that will change in a week, it’ll be more. Alec:We’ll be at 200.Brian:Yeah, we’ll keep growing. We’ll do probably $1.2 billion this year. We’ve continued to grow at about 100% rate over the last two years. I’ll be celebrating two years here the end of March.Alec:Nice, congrats.Brian:Yeah, and we continue to grow. We’ve got eight states and we’ve got a long way to go.Alec:How many sales leaders do you have? Branch managers, sales leaders, area managers? How many do you have that are leading originators with you alongside you?Brian:Yeah, so right at 15 when you include some of our sales managers that want to grow to branch managers. So, I’m helping them grow and build there. And then we’ve got branch managers, one just got promoted to an area manager. So, Chad just took on that role.Alec:We don’t want to talk about Chad.Brian:No. Alec:No.Brian:Chad doesn’t get in this one.Alec:Chad does not get in this. Chad you are not allowed. He snuck in as like the number one branch in the country, so we’re not going to talk about you.Brian:Yeah. Yeah, he crushed it. Alec:Okay, that’s a great view of scope. Billion dollar plus region, 15 plus management team, 100 plus loan officer team by the time this kind of launches and everybody’s listening. So, that’s a pretty large scale operation. That’s epic. There’s a lot going on in that world. So, what I want to start to unpack and lean into is a couple things. For you personally, I want to talk about social media for a second. I mean, it’s becoming a mandatory crucial skillset and topic for our originators.Brian:Absolutely.Alec:You can’t ignore it. And by the way, it’s been ignored for too long. I think that’s safe to say. I think our industry has ignored it for too long. Other industries have capitalized way faster than us. And a lot of traditional mortgage local professionals are either on there to kind of stalk around or trying to figure out how to leverage it. You’ve got a tremendous social media impact and presence. 60,000 plus Instagram connections. How many on LinkedIn and Facebook, do you know offhand?Brian:About 32,000 on LinkedIn.Alec:Ah, you beat me. You son of a …Brian:I’m trying to keep growing.Alec:I got to work harder.Brian:I’m going to 50,000 this year, that’s my … I’m going to get there.Alec:All right. Okay, so you got this.Brian:You’ll pass me.Alec:When did you start going all in, into the social media game?Brian:Yeah, so probably about three years ago I recognized some of those shifts happening in my own business and I realized-Alec:What’d you see? What’d you notice?Brian:Here’s what I started to see, is people were going on their phones more. Right? And we started to see Facebook, people are starting to connect there. I started to see people connecting with me that I thought, with me on social media, “Well, maybe I should do the same thing.” And I started to make actual real connections that I would meet people in person, whether they were in Nashville or another market. I thought, “Okay, there’s some power behind this.” Because if you reach out to me and I’m willing to connect with you, chances are there’s other people that I want to do business with, that if I reached out to them in the right way, not send them my pitch and try to sell them, but actually connect with them, there’s something there that I could get to more people than I could ever get to just making phone calls and dialing. Alec:Man, I hope everybody heard that message. Two things to unpack there. Number one, three years of work and effort to get to that level. It’s not overnight, nothing’s overnight. Lewis has the quote, C.S. Lewis, “You’re never too old to dream a new dream.”Brian:Love that.Alec:So, you coming in and going, “I’m seeing the trend, I’ve got to start engaging,” and building it from there, shows everybody that’s listening the possibility. The second thing you said that was gold, was that you were making real human connection digitally. Because a lot of people think it’s about followers. It’s not.Brian:No.Alec:It’s not. For those of you that are listening, and we’ll throw some social links in for Brian, but you honestly are one of the most authentic connectors with people. I mean, I’m trying to learn from you on this. I’ve told you this before, so you know this is true. When you are commenting on somebody on social, break down what’s going through your head. Because you’re engaged actively across these platforms.Brian:Yeah, I’ve just recognized for me there’s a way that I can engage with people immediately there and give them feedback about a post they had. And I think everybody’s innate desire is they want to be validated and they want somebody to come-Alec:Oh, please everyone hear that point right there. Say it again.Brian:People want to be validated. Alec:Yes.Brian:And they want to be cheered on. And I think a lot of us are starting to put things out on social media that we’re like, “Should I put this out?” And they’re testing boundaries and feeling it out what works. And if I can come alongside and I resonate with the message and then I encourage what you’re doing, you’re now going to reciprocate that and go, “You know what? Brian comes alongside me and actually validates what I’m doing.”Alec:This is absolutely the gold strategy for social media. Because it’s authentic and it’s right. But guys, hear it. Okay? Imagine your own insecurity, and I talk about this a ton, when you want to put yourself on social media. If you’re going to film yourself and put yourself out there, everyone in your head go to that space, imagine what that feels like. Isn’t it wonderful when somebody like a Brian comes along and encourages you, not gives constructive criticism like, “Hey dude, put the lighting better and fix the camera angle.” But more like, “I resonate with what you’re saying.” And I’ve seen you do this all over the place. Man, clearly that’s been part of your success in social media. Because that connects and makes engagement.Brian:It does. And then what I think I have seen is I connect up with you, then I connect up with your network and then we start to absolutely organically grow. Because we realize people that are liking the similar posts and resonate with messages, man you just start, at that point you’re kind of cross-pollinating your networks. And then I’m learning from you, and at the same time I’m encouraging what you’re doing.Alec:Dude, I love that. I love that. Let’s go there a little deeper. Obviously we said this before, but when you started three years ago you did not have everything figured out. And I would argue that none of us have everything figured out-Brian:Still.Alec:Still. So, you said, “I’m learning from you and I’m learning from others online.” What are you learning? Give a tactical example, what have you learned?Brian:Yeah, so a couple things I watched is in video specifically, we know that’s a trend. Right?Alec:Yeah.Brian:So, you have video. And I’m watching what people are doing with, closed captioning’s a great example. Many of my videos lately, it’s just a very fundamental tactic that I said, “People aren’t always turning on their volume.”Alec:Nope.Brian:So, if I can put closed captioning, it’ll differentiate my video from the person that does a video that’s a little bit more basic. But I also felt like that message would communicate and they would know this is the message Brian’s speaking about today. Whatever that is. And I went to the Monday Motivations for a while. And people knew, hey, Brian’s got Monday Motivation. What’s this all about? But you got to brand it that way. So, I’m learning that. You did a fantastic job with yours, it had sound in it that was recognizable with music and things there, that people knew right away, “Hey, this is Alec’s piece.” And they could connect up, not only just sound, but what your message was.Alec:Let’s pivot a little bit because that was too much gold. If we keep going it’s like my head’s going to fall off.Brian:Rabbit hole. Alec:You’re leading the other human beings who are working their butt off to do great, to change their lives, to build their careers, to make impact, all the fun stuff that we’re all trying to do. Let’s unpack what the modern leader, that word, that little phrase. Because I think that’s fascinating. How do you define a modern leader today?Brian:That’s a good question. I think the modern leader is the one that is a learner, they’re willing to adapt and they’re willing to lead from the front, but also empower their team. So today, what I think has shifted dramatically people don’t see, is my job is not necessarily to tell you what to do and to give you all of the tactics to execute on. My job’s to come alongside you and bring out the greatness that’s in you, your unique gifts and talents. Bring that out of you and give you courage and reinforcement on what you already have inside you and be you. Because Alec doesn’t need to be Brian, Brian doesn’t need to be Alec. Right? But if I can see that in you and I can amplify that up, man you’re going to be doing exactly what you should be doing.Alec:I want to go deeper on this. And the reason I want to go deeper on this and what you just said is because everyone has to hear things a couple times to really hear it. So, let’s put some context and framing on this. If I overgeneralize and simplify the mortgage business, there’s a lot of branch managers, regional managers, et cetera, that were great originators in their own right. So, somebody came along and said, “You’re a great originator. Here’s a title, you should be a manager.” And all you have to do is get everyone else to originate like you do, we’re killing it.Brian:Game plan.Alec:It’s over. But you absolutely described something radically different when I asked you how you view the modern leader. I think that we should go deeper on that for a second.Brian:Cool.Alec:How do you reconcile those things? Because there are plenty of mortgage leaders out there today that in my opinion are just trying to tell their loan officers how to do what they did. But the landscape’s changing. And what they did and what I did, might not work anymore.Brian:That’s right.Alec:Or might work differently and now there’s these phones everyone’s on. I mean, I used to joke that I drove around with a Thomas Guide to find houses or MapQuest print outs. Well, you don’t do that anymore. So, how do you reconcile those two things?Brian:I think as a leader, the more you get to know your team and you really lean in and have conversations with them, then you’re going to know what their strengths are. You’re going to know what they’re good at. You’re also going to know what their fears are. Because what I want to know is, where are you really gifted that you get energy? Because what I don’t want to do is put you down a path or let’s say a strategy that you don’t enjoy doing.Alec:Yeah. You have an example? Someone come to mind, or something?Brian:Here’s a great one, is going direct to consumer versus going out and calling on realtors.Alec:Yeah. Brian:Today, that’s real.Alec:Two totally different skillsets.Brian:Two totally different skillsets. And if you look at that, if you’re great with consumers, maybe you came through that, you’re great on the phone, you’re very comfortable, it’s not the face-to-face. We have other leaders or originators that man, they crush it face-to-face. You put them on the phone, they can’t really deliver necessarily that same message. So, we need to figure that out for them. It doesn’t mean I’m going to ignore the other channel or the other way to do business. It just means I’m going to amplify what you already do well.Alec:Let’s ask the million dollar question, what if the thing they need to do to win that you see in them, you don’t have any experience in? I mean, let’s just call it like I see it. Let’s say, we picked on social media, but I’ll use an example. Let’s say a loan officer’s like, “I want to go all in on social,” and you’re a leader who goes, “I’m not all in on social. I got my toe in on social, but I’m not all in on social. I haven’t mastered that game. I know how to talk to realtors.” But they’re like, “I don’t want to do that.” How do you come alongside that person?Brian:Over the three years, probably the thing that I could take out of not just building relationships, but the thing that I can look at, is the network I’ve built now has some experts and gurus in it. So, what I’ve realized as a true modern leader and to connect with everyone, I don’t have to do it all. Alec:Hold on. No.Brian:Yes, secret.Alec:No, because a leader, they’ve got to have the answers.Brian:Ah, man.Alec:They got to know everything. You feel me on that.Brian:That was the way we came up.Alec:Yes. If you know it all-Brian:And if you don’t, you’re not the best leader. Here’s what we’ve learned. Our group has leaned in on this, is we’re such a tight knit group, we bring in coaches, we bring in each other. And I figure out what do you have that you can bring to the team? And I’m okay with you know what? You’re going to teach on this topic. You’re going to be the one that maybe a peer helps you. I don’t have to have all those answers. But my job is to keep the culture tight and to build the best team and leverage my network. Because someone out there can help. Alec:I really hope every leader out there today or aspiring leader hears that. You don’t have to have all the answers, you just have to go back to what you said at the very beginning, you have to be willing to learn. And I love that comment of leading from the front and I agree. Because if you’re willing to show your people how to get uncomfortable, they’re going to have more confidence to get uncomfortable themselves. Brian:100%. Right?Alec:That’s the truth.Brian:That’s it.Alec:I mean, I went to, a branch hosted a video night for the first time.Brian:Saw that.Alec:Right? You see that.Brian:That was awesome.Alec:It was epic. And what I was most proud of though, was the branch manager in her office filming herself putting herself in the same position her loan officers were to produce video content. And I was like, “That’s what leadership is.”Brian:That’s it. They see us, they watch us and we don’t realize the impact we make. And I’ll even share, and this is against, probably counter-cultural to what we were brought up as leaders.Alec:All right, I’m ready.Brian:Here it is, leaders as I grew up, they wouldn’t share maybe fears or areas that they weren’t-Alec:Oh, they wouldn’t appear vulnerable.Brian:They would never appear vulnerable. And I go to my guys, I’m like, “Hey, I don’t have this figured out, this is something that, this isn’t in my lane all the way. Will you help me? Will you teach me this?” That, I believe, builds true connection. If I’m willing to tell you that I don’t have this figured out and you can help me, I can help you, we are now partners. I’m not your boss, I’m not coming from that angle, we’re partners.Alec:I feel like we’re done. It was like that, that’s 15 minutes. Everything’s impact in this last 15 minutes. So much stuff is impact there, that if you’re listening, man, that’s the right direction. A posture of learning, a posture of being a student of the game, and then a posture of leading with vulnerability.Brian:Yes.Alec:Creates human connection, trust, all the good things.Brian:Yeah.Alec:Okay, so where do we go from here? I mean, you’ve kind of unpacked modern leadership as you see it. What are the challenges of it?Brian:Here’s a quote I shared with my team today and it actually came from a friend of mine that I workout with and he’s actually a pastor. And he said, “Always make sure that your influence, as it grows wide, that your character runs deep.” I’ll unpack that a little bit because that can go multiple ways. As your influence grows, you need to make sure that what you say and what you do have 100% congruence and alignment. If I’m on social media saying, “This is what we do,” and we’re talking about things, that needs to be backed up. And I think people see authenticity when they see your actions follow up with your words. And when those two things meet consistently over time, not only will you attract the best talent to your team, you’ll retain them, and people will actually lean into you. Because they go, “You know what? I’ve seen that over time. Your words and your actions align up.”And that quote’s going to stick with me and it’s going to be something we lean in on this year. Man, our influence I believe is going to grow wide this year. It’s going to continue as we grow our brand and our team. But our character and what we do and making sure that we say and do the things that we believe in, and live those out.Alec:Okay, so let’s get tactical.Brian:Yeah.Alec:Let’s get tactical into living it out. What are some of the key initiatives that you have as a modern leader today for your team that you’re really going in on for 2020? We’re starting with a brand new year, right? Here we go. Roaring ’20s is back. What are some of the things you’re diving into?Brian:We’re going back to fundamentals of how do we get local in our community and do realtor education and trainings? Which in the past, we had done. But we’re going to put a different twist on that. Because now, what we need to do is not only get out in front of the realtors, they don’t want to hear about our products and programs and the things … Let’s be real. Let’s not show up and-Alec:I mean, they do ask that question, but-Brian:They do.Alec:You’re right, man. You host a seminar and say, “Let me tell you about my product list,” it’s like no one’s coming.Brian:Yeah. But what I’ve found they’re going to lean on this year is we’re going to share our journey. And we actually have set up a studio in Nashville, so you’ve probably seen the one that we put together.Alec:Ooh, I have seen it online.Brian:And we’re going to bring in some agents and say, “Hey, come along the journey with us.” Right? We’re doing video, we’re uncomfortable, we’re still learning it as well. Do you want to come along that journey with us?Alec:That’s killer right there.Brian:Because that’s what they want, is someone to come along and be a partner, not just receive the referrals. We can all do that, right?Alec:It’s almost like generate the referrals together. Brian:That’s it. That’s going to be a pivot for us.Alec:That’s a great initiative.Brian:Yes.Alec:Do you have a goal with that? Or is it just kind of like, “Hey, how many realtors can we get in?” What’s your thought on it?Brian:The low ball goal is I want 50% of my loan consultants actually participating in it.Alec:Nice, okay.Brian:That’s a low goal. I mean, I think that’s achievable, that’s doable. Man, in a perfect world, we’d get to 100%. That would be the bar of excellence. But reality is, we know not everybody leans in on that concept. So, we’ve set that out. Alec:Sure.Brian:Right? And that’s reality for us. Alec:Okay. Love that initiative.Brian:The other tactics that we’ve kind of gone into is guys, this year you need to get clear on your beliefs and you need to be doing your own videos. The company has provided great marketing, like many companies do. But I want to hear from you. I want to connect with you.Alec:Yeah, you got to humanize the brand.Brian:I want everybody on our team to at least have one video that at least explains, and I can connect with who you are. Alec:It’s a big goal.Brian:It’s a big goal.Alec:Everybody get out there and get vulnerable.Brian:It could be a minute, it could be three minutes. We don’t really care what it is. But I want everybody on our team to have the opportunity to see what happens when you put yourself out there and connect. Alec:What’s been your experience when you put yourself out there? What happens?Brian:Scary in the beginning.Alec:Yeah, but what happens? I get the fear, but what happens after you actually do it?Brian:The amount of connections I’ve made at events and the amount of people that have leaned in and supported me when I most needed them to give me a word of encouragement on a day that I’m down, in a day that I needed it where I got punched in the face, something didn’t go that way and where boom, somebody’s reached out at just the right moment. And those were people that I connected with many times on LinkedIn. Right? I mean, you can’t put a value on somebody just reaching out and saying, “Hey man, I love what you’re doing. Love that post, that really spoke to me.” For me, that’s fuel. That’s like, “Brian, keep going. Keep going.”Alec:You got bringing realtors alongside on the journey and partnership, which is epic. You’ve got a desire to push 100% of your loan officers and sales force and leaders into a place of vulnerability and empowerment to get on video, tell their story. What else is running through your head?Brian:As we grow, I’m passionate about leadership. So, as I look around at the team that’s around me, we’re leaning in on coaching. Because here’s what I know, is if we all consistently learn and get better, it’s like sports. I go back to my sports days. If I don’t practice-Alec:I was going to say.Brian:If I don’t practice, I don’t get better. And I believe the people that show up early and stay late and put in the work get better. The consistency. And we’ve really bought into the 1% every day improvement. I’m not going to solve the world’s problems or becomes an expert marketer in a week.Alec:No, no chance.Brian:It’s not going to happen.Alec:Nope.Brian:But 1% every day. And last year we had a motto, “One more.”Alec:Yeah, I saw that-Brian:It’s a t-shirt.Alec:But what did it mean, one more?Brian:So, it took on various meanings.Alec:It can.Brian:But for some people it was I’m going to make one more phone call before I leave today. I’m going to put one more loan in before I finish my week. I’m going to make one more realtor call before I end the week. I’m going to do one more sales call. Whatever it was for them, it took on various meanings. What was interesting is the lofty goal we set, oh I know one more had an impact on that.Alec:Oh, I have no doubt.Brian:Because every month we were just right there clipping along a goal to double our business in a market that we were not that well-known and we were still new to the market. It took every loan officer taking on that mentality of one more. Because if everybody doesn’t put one more in, whatever that was-Alec:Is there a theme this year, then? Is one more going to continue or is it going to … What do you got?Brian:Yeah, so we’re going to announce one coming up.Alec:Oh, it’s a secret.Brian:It’s a secret. T-shirts are going to be out, it’s going to come out in February. If it hasn’t been announced, hopefully-Alec:No, no, this’ll be out by then.Brian:Oh, it will be out by then? So it should be good.Alec:This’ll be out by then. So, what do we got?Brian:Okay, so …Alec:Spill it. Trust me, this is not … You’re good.Brian:Okay. Okay. We did the one more and then this year we had looked at … I’m trying to remember how we framed it because it’ll be on the t-shirts. But it was more around making an impact and actually making what we do count. And more into the significance of what we do. Because I think that’s where-Alec:That’s a great thing. Significance.Brian:And I don’t remember the … because we’ve got a tagline for it. So, I’ll add it to this when we get there. I don’t remember it.Alec:Yeah, it’s playing around in your head. But I do love the comment of significance because we get jaded in our business. Not jaded, we just get transactional sometimes. If we’re really hustling and cranking, I mean, when I was doing loans I was closing 10, 15, 20 loans a month. Man, you’re a machine. Well, you forget you’re actually helping human beings.Brian:Every day.Alec:With like the biggest loan of their life. You’re just like, “Yeah, next one.” So, I love that and tying into significance. So, you’ve got bringing realtors in, the significance, whatever the new slogan is for the t-shirts, which I’m jammed. I better get a t-shirt.Brian:Oh, you’re getting one.Alec:I better get a t-shirt.Brian:Yeah, you’re getting one.Alec:I’m mad at Chad. And then you’ve got getting everybody on video. And then you really are, you’ve talked a lot about developing leaders. What’s your goal for 2020 in developing leaders?Brian:There’s a couple areas that I think leadership as you look at, we’ve got to continue to grow our teams and retain our teams. And a leader is one that creates other leaders. Not by title, but by are you a leader in your community? Are you a leader in your circle that you run in? Do people come to you and view you as the expert? So, I’m looking at this is a group of leaders, regardless of your title. So, one area we are going to lean on, which I think is a skill that’s changed, we talked about earlier, is the originator role has changed, recruiting and retaining top talent looks dramatically different than it did a few years ago.Alec:Oh, I totally agree.Brian:Totally. So, that is a skill that we’re leaning in on heavily with my group. Because what I know is, if they can attract and retain the best talent, we will win in the market. We will.Alec:Yeah. That’s pretty simple. Simple equation.Brian:It’s a sports analogy.Alec:Yeah. Brian:If I have the best players and we’re coached really, really well. Right? We will win games.Alec:Let’s unpack coaching for a minute. You said it a few times now, I know you’re passionate about it. And I know there’s a lot of people out there who are not coached today. And I’m just going to … I’m just stating the fact. Just don’t have a coach. How do you frame coaching, meaning what should a coach do? Right? Come alongside you. How do you find coaches? How do you know if they’re good or not? What’s your process?Brian:Yeah, so I’ve had multiple mentors, I would say, we’re different than coaches.Alec:Okay, yeah. Let’s separate the two. Because there are people out there who are like, “Oh, this person’s my coach.” We’re like, “Uh, they’re your mentor.”Brian:Yeah.Alec:What’s the difference?Brian:Fundamental difference is a coach is actually going to provide true accountability. Alec:There you go.Brian:I mean, bottom line.Alec:You don’t need to say anything else. Yeah, because a mentor’s not going to call you every day and ask if you did your job.Brian:No. No. They’re going to give you wisdom-Alec:Yeah, they’ll give you advice.Brian:They’ll give you advice and they’re going to say … But typically a mentor is there to make you feel good and they’re going to give you insights as to their experience and how that relates to you. And it’s just, it’s going to be a conversation. A coach is going to get you uncomfortable. The best coaches in my life got me so uncomfortable. And you look back and go, “I’m glad I did it.” During the process, maybe not so much.Alec:Do you remember a moment?Brian:I do. I think back and I share this story. One of our coaches was so particular about being on time and actually being early. His on time was 15 minutes before practice.Alec:Of course.Brian:You showed up, you had your gear on and you’re warming up. Because when he came in, practice started. Alec:Well, you rolled up late.Brian:I do remember a time when I showed up late. And I ended up doing somersaults on the pavement.Alec:That was what you … He just said, “Hey, thanks for being here, Brian. You’re going to do some somersaults.”Brian:”You’re 10 minutes late, you’re going to do 10 minutes. Just keep somersaulting on the pavement.” Okay?Alec:You mean like forward rolls or like handstand-Brian:Oh no, no, no like forward roll somersault.Alec:Forward roll. On the pavement?Brian:On the pavement.Alec:Oh, you’re going to earn that.Brian:And you’re like, “Man, how can I not get this right?” So, being on time today has stuck with me. And there’s consequences to actions, right?Alec:Do you do forward rolls now when you’re late to a meeting or something? That’d be epic. You walk in, you’re like, “Hey guys, I’m sorry, two minutes late. I got to do two minutes of forward rolls.”Brian:That, burpees, something, right?Alec:I’ve got one too, I shared this on social a while back. I was a junior playing on varsity basketball, we were a great team, won a ton of games, CIF, all that fun stuff. And I had a moment where my power forward, my best friend at the time, when he was going to cut back door, he would hold a fist out. So, he would kind of come out from the pit, hold a fist, I’d fake it, juke the defender, he’d cut back door, dunk. He couldn’t dunk, but in my mind I saw it, a beautiful dunk.Brian:It looked good in your mind.Alec:Yeah. And he came out, he did not put the fist out, he cut back door and I just sailed the ball off to the sidelines. Just into the … And it was a practice, it was practice. But I just sailed it off. And I yelled at him because I was like, “Kevin, put your fist out,” or something. Coach blew the whistle, brought everyone together. And I’m like, “Oh, Kevin’s going to get it. Kevin’s going to get it.” And dude, and for me, who grew up very insecure, had to deal with a lot of personal demons. Being on the spot, in the spotlight, I’m never comfortable. I’ve gotten comfortable now. But coach, all of a sudden I realize he’s looking at me.Brian:Yep. Uh oh.Alec:And the ball comes back, someone got the ball, and he puts the ball right in my hands. And he’s like, “Alec, who threw the ball out of bounds?” And I immediately went into an excuse. “Kevin didn’t put his fist out, you saw, he didn’t put his fist out, we all know the rules. You got to put your fist out.”Brian:”Come on, man.”Alec:Kevin! And he immediately just goes, “Alec, who threw the ball out of bounds?” And everyone just like on me. And I just remember I’m just like, “Ah, this is the worst feeling ever.” But what it drove into me was such a state of accountability that the results are my results, regardless if he held the fist out or not, I threw the ball out of bounds. I had control of the ball. And I’ll never forget it. Just like the somersaults. It ingrained in me a value set. And I’m forever thankful for Coach [Ora’s 00:29:32]-Brian:Straight ownership.Alec:Yep. Changing my life, dude. It was a moment of that. Kind of looking back to the present here, how are you training leaders in this kind of style? And specific to coaching, how are you encouraging them to get coached? I love the concept that coaching is accountability, not just mentorship. But that also makes people uncomfortable, so how are you leaning into that?Brian:Yeah, so I was the first one to actually hire a coach around-Alec:Of course. Of course. So, he did it first.Brian:I had to.Alec:No, no, this is the message. This is the message. Everybody. “How did you start and get everyone into coaching?” “I did it first.”Brian:Yes, I signed up. And what I shared with them was very simple is, I need a coach to continue to get better because as the team grows, I need to grow as a leader.Alec:God, I love it. I love it. No, of course. Of course.Brian:And this is something I believe and I’ve shared with my group. My capacity has to increase as our team increases. My ability to run and lead a team doing $250 million versus a team doing $2.5 billion-Alec:Yeah, it’s different.Brian:… looks dramatically different. So, I’ve leaned in on the concept of I’m going to help leaders grow with us and we’re going to grow together. I’m not going to look to replace, I’m not going to look to make you somebody you’re not. But I am going to bring out the best in you. So, hiring a coach for me, it showed them Brian’s willing to put his money where his mouth is and he’s going to go and walk this. Right?Alec:So, let’s go deep and deep and deep. What does your coach do for you?Brian:I have a recruiting coach that we actually have accountability that’s there. But also, my systems. I learned for me, and I really have learned this, is I have good intentions some days. If I don’t have great systems-Alec:Good intentions don’t translate to actions.Brian:They don’t pay the bills, they don’t happen. So, you need fantastic systems. Because it’s one of those where you may have high goals, but if your systems are down here, you will fail.Alec:So, one benefit of coaching for you was systems.Brian:Systems, right out of the gate.Alec:What else?Brian:And then I went into how can I start to take what I’m learning, translate to that to my team? Because if they’re not in coaching yet, how do I take what I’m learning but then give you some of what I’m learning? Because as a leader, that’s part of what I do. If I learn something from this coach or I learn from this podcast, my job I believe, is to share that and to give that almost as a gift to my team. To say, “Here’s what I just learned. How does that relate to you?”Alec:Yep, awesome.Brian:”What do you think about this?” So, we’ll many times collaborate on those ideas, as we come in together. So, that was one. And then I realized on a separate level, we hired another coach that’s more in the sales, prospecting, follow up, how do you become a person of interest? That ties into the whole influencer of social media and all that.Alec:Agreed.Brian:It’s like I don’t have this figured out, but I found somebody that did. And they had a great network around them. So, two benefits came out of it. One, I was being coached, so I was accountable and I was learning new skills. Two, I’ve now tapped into a network of like-minded individuals that’s being coached by someone that’s fantastic.Alec:Yeah. And that’s lifting you up too.Brian:That’s lifting me up.Alec:And you’re learning the whole time.Brian:And I’m learning and I’m connecting with people that are like-minded on the journey that want to get better.Alec:So, how do you translate that, how do you tell your team, “You need a coach.”? You’re showing them, you’re doing it yourself. But then you still got … they got to do it. Brian:Yeah.Alec:So, what do you do?Brian:If you’re sincere and you go to your team and say, “Hey, I want you to come with me.” I would bring them to specific events with me.Alec:Oh, okay.Brian:”I want you to come with me to this event, I’ve got a ticket for you, here’s who’s speaking.” And I would bring them to either VIP dinners, daily sessions. “Hey, will you join this webinar with me? Here’s the topic that’s going on.”Alec:Get everyone exposed.Brian:Get them exposed to it. And however I can get them interested. Because what I know is if I can get them from this point of not being in the game, I get them interested, and then the next phase for me is get them committed. Because interested and committed are two different things.Alec:Oh, we know that.Brian:Right?Alec:What’s the thing, what’s the animal thing? The cow is committed to the glass of milk but the pig with the bacon is committed. I screwed it up. I’m terrible.Brian:Yeah, one of those. Alec:Thanks for listening, this is Alec Hanson with the Modern Lending Podcast. All right, all right. So, coaching obviously plays a significant role. How much of your success would you attribute to coaching?Brian:A large percentage. I don’t know that I could quantify it, but I would tell you the times that I look back on seasons that I’ve been all in with a coach and actually was very consistent, the results speak for themselves. When I pull off of that, I can see that start to, in a way I lose clarity and I lose focus.Alec:Yeah. I wanted to ask it so intentionally because I wanted people to hear the reality that it’s really hard for us to stay absolutely accountable and focused on our plans, ourselves. Brian:Yes.Alec:We just, we self sabotage, guys. We self sabotage. Real talk. Insecurities come in, busy-ness comes in, whatever, the man cold shows up and you’re out for two months. But if somebody’s on your back with love and encouragement. So, what characteristics do you think is important in a coach? That someone should be looking for. If they’re like, “Fine Brian, I believe you. I should get a coach.” What are the characteristics they should be looking for if they’re out there talking to people?Brian:I look for people that have results. Because that’s something-Alec:That’s a good start.Brian:I mean … But I think it’s overlooked. People hire coaches that haven’t actually been successful. And I’m a big believer in, if I’m going to hire somebody and spend my money and invest there, I want to know the results. Tell me some clients you’ve worked with. What have you done?Alec:I laughed, but now I’m serious. There are a ton of, quote, gurus who are out there telling you how it is and never really living it themselves either.Brian:That’s right. Alec:Yeah, so that’s a good point. Look for results.Brian:So, I would start there. I also want to look at the network that they have and the association. Because it’s back to the people you associate with the most, you’re going to drift and become like them. And is that a good thing or a bad thing for you? If you’re around high performers and that’s a group that’s being coached, here’s what I know, if I put myself in that setting I’m going to grow and improve. So, I want a coach that actually has people they’re coaching as well. That it’s not just me being coached, it’s also me being part of a network of people being coached. Because that’s where you exponentially grow your influence and everything else. You can learn from people. That’s beyond coaching. Alec:That is.Brian:So, I would look for that.Alec:Results and you look at who they coach and the people they surround themselves with to establish credibility, authenticity. Awesome.Brian:Yeah. Yeah, and don’t forget their systems too. Because here’s what I’ve started to figure out, that coach is going to follow up with me and put systems and processes in place that I can learn from that actually could fit into the mortgage process and they could fit into how I lead my team. For example, we’ve moved to video calls.Alec:With the coach or with your team?Brian:Both.Alec:Oh.Brian:Because I saw them doing video calls. And I’m like, “Well, I should see my team.” My team’s across eight states, I don’t see them regularly. But if I can see you, I connect with you. Those are little subtle differences. We now send recognition emails and recaps via a video. No more long emails.Alec:Oh God, thank you.Brian:Gosh. Who wants the long email?Alec:Well, at least I can turn the video on and I can do my email and I can be listening and getting the … I guarantee some of you listening to this podcast right now are literally multitasking. It’s on, on the screen next to you. And that’s fine. Do your emails, drink your coffee.Brian:That’s right.Alec:I love it. Brian:Right. So, we shifted there. And those are tactics today, that as a leader your ability to connect with your team in a modern approach is going to differentiate you. Because what I know is most leaders aren’t going to do that.Alec:Nope. No, they’re not. Let’s get vulnerable.Brian:Yeah.Alec:Let’s do it.Brian:Let’s do it, man.Alec:I mean, you’re talking about it and you’re leading from that position. What are you working on right now? What’s your coach working with you on right now? What are you learning? What do you see in yourself as a deficit that you’re like, “Hey, I’m focused on this.”? What do you got?Brian:I think in some areas, I have confidence from playing sports in that, in other areas I feel like probably some of you guys, I’m not adequate. I’m not ready to take on this large of a region. As we’re growing this fast, as a leader sometimes I’ll doubt. I’ll go, “Hold on, we were this big and now we’re going to be this big. Are people going to want to stay on my team?” It’s the negative self-talk that gets in. And I’m a positive guy. But somehow it still-Alec:But you still got negative self-talk.Brian:Dude, it still gets in there. And you’re like, “Get out of my head. I don’t want to hear that.” So, those are things we’ve been working on. How do I start my days in a way that will program my subconscious and get my mind ready for the day? Ready for battle, in a way. Of, “Okay, today there’s going to be things that go really, really well. Fantastic. There’s going to be some things too, they don’t go my way.”Alec:Dude, Brian I love this. In episode one on the Modern Lending Podcast I interviewed John [Bianki 00:38:04], $500 million producer, first team that I really know of, all this incredible stuff. And to hear him talk about call reluctance that he still deals with as a insecurity. To hear you go right in and say, “I still got negative thoughts that I manage. I still got insecurities that pop up and be like, ‘Hey, can you do this?’ They’re chirping left and right.” I hope everyone listening understands. There’s no superhuman out in the world today, guys. They don’t exist. What do exist are remarkable people who are doing their best to deal with the same thing we’re all dealing with, the same insecurities, the same battles, the same demons. And we’re all wrestling with it. And that is encouraging because that means there’s hope.Brian:Right.Alec:And everything you’re dealing with, other people have dealt with or are dealing with today and you’re not alone.Brian:That’s right.Alec:What else?Brian:And to be in touch with that I think is important. Because what I know if that’s going on in me, I want to be able to share that with leaders on my team so that they know that’s things we can talk about.Alec:Yeah, and it’s okay for them to have it too.Brian:It’s okay. It’s okay to have a bad day. It’s okay to show up, and in our world we talk about I’m very competitive. So, something I’m learning to deal with is when something doesn’t go exactly as planned, I want to win. Alec:Yes.Brian:So, how do I respond to losses? How do I respond to setbacks? How do I respond to here’s the goal, but we’re not quite meeting it here? And then how do I bring people along the journey without being the hammer? And how do I encourage them? And that’s an area I’m working on is how do I lift you up versus, “I know what you need to do, I need to get you from point A to point B.” But how do I get you there as a true leader and influencer, versus, “Hey, I’m your boss. You’re going to do this.”Alec:Yeah. Where’s the authoritarian, yeah.Brian:Yeah. And I think that’s for all of us as a leader, you have to know who you’re talking with and to be able to connect with them. Because that connected is going to open the window to let you actually share and speak into them. I’ll give you a real example this week.Alec:Okay, I love it.Brian:Talking to a leader, and let’s call it what it is, they’re struggling recruiting. And I said to them, in so many words, “I need to give you some tough love right now. Are you willing to accept what I’m going to share with you?” Alec:No.Brian:And if they say no, that’s okay. Say, “I’d like to share something anyway.” Right? Alec:So, I’m willing, I’m ready. I’m ready. I need the love. What’d you say?Brian:So, here’s what I’ve been observing. Here’s some areas that you’re winning in, and I believe you have greatness in this area. But we haven’t figured out how to tap into it together. I need your help. We need to figure out how we can help you attract the right people to your team that you’d be proud of to work alongside and that you know would help you achieve your goal. Because I know you wanted to add people to your team this year. What do you think we can do? What are we not doing?Alec:You just said that like you just rolled off your tongue. But there was so many pieces in there as I was listening, that are worth me recapping for listeners, that are leaning into being a leader and a great leader. Number one, you recognized in the person their inherent goodness and their inherent greatness and capacity to do well. You were like, “I see this in you. I validate this, I recognize this.” But you didn’t shy away from the fact that, “Hey, we didn’t get there.” And the way you phrased it was so good. “I know you wanted to add more people to your team this year. Obviously we didn’t do that,” and you didn’t need to say that, but you recognized, “Hey, we didn’t hit it.”And then you offered to come alongside. “How can I help? Let’s explore this together.” I mean, I think that equation as you communicate to your employees, guys out there, man, it’s going to resonate. Because you’re taking it on together.Brian:That’s right.Alec:So, how did that person respond?Brian:Our follow up action item is, we set them up with a different manger on my team to have a conversation to figure out how they had been winning. Someone that was highly successful that had hired 12 people in the last year, highly successful. In our world, to hire 12 quality people, you’re hustling. Right?Alec:You are hustling.Brian:So, I saw in that moment, the feedback could come better from a peer on my team that knows me, knows what we believe, is bought into the mission, and they could give that tough feedback in a way that would be received. Literally the next day I get a phone call, “Brian, thank you. What you did was the catalyst for me to make a phone call to another manager in another market to figure out what am I not doing?” And I loved what they said, “I knew I was doing the activities, I just knew I was falling short.” They recognized effort does not always equal results if it’s the wrong activities and you’re not approaching it with the right follow up and systems. So, it opened a window on our team. And this is part of what I think modern leaders do well, is you leverage the strengths of your team. It doesn’t all come from me.Alec:100%.Brian:100%. Every time-Alec:I love that you had them call another leader in your group. I love that. Because that … man, number one, you’re helping that other leader grow. Number two, you’re stepping back and letting your team wrap support around. Brian:That’s right.Alec:Because sometimes that’s the right person to talk to them.Brian:That’s right.Alec:They may not need to hear from you or me. Maybe they need to hear from someone who’s doing it with them.Brian:That’s right.Alec:Dude, that’s an epic story. All right, so few more minutes. I do this kind of as a wrap down every time on this podcast. I would love for you to just kind of take our conversation, take what you’ve been learning, if you were speaking one-on-one to a loan officer right now and they were asking you what to do or asking you for advice or encouragement. And they could be brand new to the business, they could have survived the crisis and have been in here for 20 years. What do you share with them? What’s your message to them?Brian:Today, personal brand matters more than anything. Your testimonies and who you are as a person is going to connect up with the consumers and the referral partners that you need. You being you, is going to connect you with the people you need to be doing business with and that you can serve.Alec:Yeah, you can’t hide anymore.Brian:You cannot hide. And I just believe life is too short to go out there, the fake it ’til you make it is long gone. Let’s call it what it is, if you’re authentic and you come out and you share who you are. For example, in Nashville there’s a lot of musicians.Alec:You think?Brian:You think? I’ve heard that’s true.Alec:There’s several.Brian:So, if I love music and I connect up with people and that’s venues I can go to, I’m going to do events and I’m going to do things around music because that’s what I love. And I’m going to lean into that, while at the same time, leveraging my unique ability to help people finance their homes and refinance and to be a true partner. So, I would encourage people to get clarity on who you are and what you believe. Because at that point when you get clear, you can then communicate your message and you will attract people that want to get there. And you have to put in the work to follow that. It’s not a, “This feels good message,” and, “I’ve got clarity, I feel good.” Now what? What are you going to do with it?Alec:Totally. Brian:Do not be a secret agent in your market.Alec:I love that. Brian:Okay?Alec:That’s right. Do not be a secret agent.Brian:If I can’t find you online and you’re not showing up in the marketplace. And I shared this with our team, you need to earn the seat at the table. We’ve talked about this. But when you get a seat at the table, it’s going to be your character and your ability to deliver that’s going to make sure you retain a seat at that table. I mean, that to me, we can talk tactics, we can go into all these other things. But man, if you don’t have this and you continue every month, like most loan officers. “I got to go find another deal. I got to find another deal. I’m starting at zero.” I hear this all the time, the roller coaster.Alec:It’s true, this is what they’re living.Brian:Get off the roller coaster ride, get a game plan, get a coach and get serious about your business and go 100% all in and watch what happens. Alec:All right. I’m in. One more. One more. The branch manager, the leader today, leading a group of people. What do you say to them?Brian:Surround yourself with people that are doing what you want to do, that will have a positive influence on you in the sense of they will bring out your individual greatness. I believe more than ever, surrounding yourself with the right leader that’s going to challenge you, but also come alongside and be a partner, is vital today. And that shift has happened. It is no longer I’m going to tell you what to do in your business and it’s just going to be a tell and follow. You need partners in your business that care about you and that’ll come alongside you. And I would look for characteristics of people that are stepping outside their comfort zone regularly. You want to be aligned up with those people. Because those are the ones that are going to inspire you when you need it and they’re the ones that are going to push the envelope. As their capacity grows, your capacity grows.Alec:Dude, you are on fire. I mean, there’s so much in here that I’m excited for people to experience. Brian, thank you for taking the time.Brian:Thank you.Alec:To just kind of impart your wisdom and share your vulnerability. I think that to me is a true aspect of a great leader and you’re living it. So, thanks for doing it here with everybody listening. So guys, that’s it. There’s the messaging. Brand is inevitable, you’ve got to build a big one. And if you’re going to be a leader today, start with learning, start with making yourself vulnerable and start by putting people around you that are going to help you become who you want to become. Brian:That’s it.Alec:That’s it. All right, we’re out of here, you guys. Stay tuned for next episode. If you enjoyed this, drop a comment, share, subscribe, spread the message. I appreciate you guys. We are out.

The Digital Mayor

I try something wild in this video! I invited all of you to join me, literally LIVE on video, as we discuss what it means to be the Digital Mayor of your online community.

What happens in this edition of LiveTime with Alec:

  • We have a town hall on the creativity of our current climate with a virtual world
  • Technological problems you can face.
  • How you need to reflect, adapt, be creative and not fear change.
  • The importance of connecting with each other virtually.

Episode Transcribe

Alec:(silence) Hey, what’s up, everybody?

 Oh, man. I want to do something crazy today.

I’ve been thinking about a lot of stuff. I’ve been thinking about a lot of stuff, and I’ve been talking to a lot of you guys and a lot of my community. So we’re just going to do it. I’m just going to do it. Welcome to the first digital hangout. I have some really fun things I want to talk about today, about being a mayor digitally, but I’m going to invite all of you guys, anybody out there, to join the stream and come up here live with me.I know it’s a little wild, but I think it’s time, because if we’re going to connect to other human beings and if we’re going to be great influencers with our communities and earn a place to be able to be that trusted advisor, we’ve got to be willing to put ourselves in uncomfortable positions, and we also have to be willing to be vulnerable and connect to other human beings. So I’m doing that right now by inviting you all into the stream, and how you can join is I’m going around right now and I’m going to be putting the link to this in the comments. Hold on a second, because I’m doing it on Facebook, and you can hear me talking, so that’s weird. I’ll get out of there, and I’m going to go to LinkedIn here. I’m going to throw myself in the comments.Hi, guys. Hi, Melissa. You’re going to hear an echo. Don’t worry about it. Just ignore that. I want you to literally click that and come join me. Come hang out. When you click it, you’re going to enter a little studio, and I’m going to bring you on. We’re going to talk, and you’re going to be part of the conversation here, because, to reiterate, if we’re going to be sales leaders, if we’re going to have impact and influence, we’re going to have to have human connection, which means we’re going to have to be vulnerable.In a world right now where we are locked out and locked down from that connection time, we’ve got to figure out new ways to do it. So for you that are joining me on LinkedIn, the link is in the comments. Click it. People are freaking out right now, because they’re like, “I don’t know if I want to join there.” Hi, Trisha. Thanks for watching. Click the link and come into the room, and let’s talk.I want to share a topic about … Someone’s coming in right now. Hi, Leann. Welcome to the stream.Leann:Hi. Thank you.Alec:Leann works with me, guys. I did not ask her to join me, which is funny. So she just did anyway. But I could have six people in the room hanging out and talking. So, as we grow, I’ll keep people coming in and out, and here some more people come. I love it. Al, welcome. Hey, buddy.Alex:Hey.Alec:Then I can’t see who … This is Andrew? Who’s Andrew? Well, he’s kind of there, kind of not, so there. Alex, where are you joining us from, dude? Can you hear me, Alex? I don’t think he can hear me. Leann, can you hear me?Leann:Yeah, I can hear you.Alec:All right. Oh, Al, you’ve got to put your audio … [inaudible 00:03:24] your audio. You’re lagged, which is no fun. Steven. I don’t see you joining the feed, but I’m sorry, buddy.Alex:Where am I coming from? Is that what you said?Alec:Yeah.Alex:Sorry, one second. Hey.Alec:There you are.Alex:Can you hear me?Alec:Yeah, you’re live. This is the best part about technology, is we’re all figuring it out together. No problem, Alex. I’ll put you on mute for a sec. I was on my kids’ Zoom call this morning, helping them get connected to each other, and they don’t know what they’re doing. The teachers don’t know what they’re doing. It’s all a brand new environment, and I think that we have a chance, as leaders in our industry, to be the digital mayors. So Scott’s coming on. Let’s see if I get him in here. What’s up, Scott?Scott:How you doing, Alec?Alec:Yeah, buddy. We got you. Good to see you, man.Scott:Good to see you. I was just getting beat up by my four-and-a-half-year-old daughter. She threw a little tantrum, so I figured it’d be a good break.Alec:Isn’t that the truth, dude? Alex, are you up on audio now? Can you hear us?Alex:Yeah, I can hear you. Can you hear me?Alec:Yeah. Great. Excellent. So it’s so fun. I love that you guys just pioneered and jumped into this. This is like the equivalent of just an open door neighborhood block party now, like, “Come on in. The door’s open,” and I think we can do a great job leading this. I was talking earlier about … I’m going to add Brian here.Brian:Hey.Alec:What’s up, Bryan?Brian:How’s it going?Alec:It’s awesome, man. Where are you joining us from?Brian:Bend, Oregon.Alec:There you go.Alex:Nice.Alec:I think this is our opportunity to create these digital connections, and I think as great salespeople and great mortgage originators or, gosh, any business right now, right? So I was having a Mastermind internally with our sales team. I thought, “We need to have this externally,” and I’m going to add Nikki here, because I knew she would join. I knew you would join. I knew you would join.So what I’m streaming here live, and you guys, feel free to kick out anytime you want and add some commentary, because I’ll ask some questions here. I know everyone’s life is busy and you might have kids run in and tackle you like me. So I’ve locked the doors. But how many of you guys have seen now the digital happy hours? Have you guys seen those popping up?Nikki:Yes.Alec:Have you hosted them? Have any of you hosted one yet?Nikki:I’m hosting every day at five o’clock, happy hour.Alec:What are you doing, Nikki?Nikki:I do a dance party for four minutes.Alec:That’s hysterical. I have watched … I mean, isn’t this digital space transforming our world? Have any of you five people seeing that poor gal who is … I think we lost Scott, so I’m going to move him so we can add more. The poor gal who [crosstalk 00:06:34]. You’re in, buddy.Troy:Hey there. How you doing, Al? [inaudible 00:06:38].Alec:Good. Where are you’re joining us from?Troy:I’m from Burlingame. Well, let me tell you, right now [inaudible 00:06:43] California.Alec:Go ahead and mute whatever else you’re watching us on, maybe [inaudible 00:06:48] feedback [inaudible 00:06:53]. You hear it? Someone’s got the feedback. All right. It’s Troy. I’ll give them a second to … When people join and they’re still watching, you hear the lag version of this stuff. So it’s a funky world.But have you guys seen that poor gal on the Zoom video who goes to the restroom while she’s on the call?Nikki:I heard about that.Brian:Yeah.Alec:But, I mean, this is like we’re going into new, uncharted territory, and it’s like now she’s viral. It’s the new world that we’re in for some period of time. We don’t know how long. But I’d like to ask you guys on … So we’ve got Nikki, Brian, Alex. What are you seeing people do that’s creative or interesting? Share something.Nikki:Oh my gosh, somebody has a Survivor episode going on.Alec:What do you mean?Nikki:They are just going out into the wild and doing two minute … The key here is keeping it short, I feel like, because people have a short attention span. So that was the coolest thing that I saw today so far.Alec:That’s awesome. Troy, I tried to unmute you real quick, but it’s getting that echo again. So I think either the computer or a phone or someone else is playing this stream, so it’s echoing. Who else? What else? Alex, you were going to say something.Alex:Yeah, I haven’t seen, personally, any crazy things, besides like some challenges going around.Alec:We love challenges.Alex:I know with me and my team … I’m from Santa Clarita, California, and I really feel like, with everything, the whole world kind of slowing down right now, we have a chance to capture everybody’s attention and start putting out the content and the messages that we want people to hear and also associate with us. We want to be the people that people look to as a positive influence and want to kind of capture that attention and put a message out that, “Hey, business is still going on. This is not a time to necessarily be scared, but just a time reflect, and let’s talk about where we see everything going and how we can position you to be best prepared for what’s going to happen.” So we’re just trying to get that message, get the content out, and kind of take advantage of the lack of people posting live videos at open houses and going out and doing things. I actually have seen a large decrease in overall videos coming out.Alec:Yeah, yeah. Yeah, what about you, Brian? What have you seen people do to connect digitally?Brian:Oh, well, so I do Brazilian jujitsu. I’ve been doing that for about ten years now, and our gym is actually doing a live broadcast of what a normal class would be, but it’s just our instructor and his wife. But the intent is for all of us to kind of join in and do the moves and still participate. Their daughter is there, responding to Q and A and stuff.So it’s actually been quite a bit of fun, and we’ve created kind of some challenges for each other to help each other stay engaged and that sort of thing. So it still builds community, but it’s not the exact same as being there. Obviously, you’re not sweating on each other, but, otherwise, it’s still a good way to connect, and it’s been a lot of fun so far.Alec:Hey, Leann, I’m going to just pull you from the stream for a second and add some people. Hi, Jessica. Can you hear us?Nikki:What’s up, Jess?Alec:We don’t have your audio yet, I don’t think.Jessica:There we go. All right. I got it.Alec:All right. Yeah. So, Brian, I was going to make the comment, it’s so funny. So some people don’t know I’ve owned a CrossFit gym for 13 years now. It actually started in my garage behind me, and we have the same issue, right? We can’t be open. So the team that runs that, Max and Gee, they’re wonderful people. They do to a live stream at six AM. They go over the warmup, the workout, and we’ve actually started giving all of our members packages of our gear. That’s better than sitting in our warehouse.Brian:Oh, that’s cool.Alec:They take it home, and then we send out the programming with the gear we gave out that week. We’re just trying to stay connected as humans, right? So we’re tagging each other and showing us doing the workouts. It’s hard, though. But what you’re doing, that’s the kind of leadership that we need to show, and that’s my challenge for everybody. So, Troy, I think we got you on audio. What are you seeing, man?Troy:Yeah. I mean, we’re, I mean, kind of like everybody in California. We’re in the shelter in place mode, and so getting really creative in terms of meeting with our realtor teams, doing virtual meetups like this, and then, also, we’ve even done some virtual happy hours, which is kind of fun, especially by the end of them. They’re kind of entertaining.Alec:Yeah, I bet they get more interesting as they go on. The longer they go on, I’m sure they get more [inaudible 00:11:43].Troy:Yeah, yeah. So, I mean, it’s actually fun. We’re kind of making the best of it. Obviously, it’s a situation that we don’t know when it’s going to end, but, at some point, we’re going to come out of this, and have to feel like we’re in pretty good shape, going in. So yep, there’s some optimism there, trying to come out, but it’s a good opportunity, I think, for us to get more acquainted with our tools and meeting virtually and stuff like that.Alec:Yeah. Abeer’s asking if she can join my CrossFit. Yeah. She wants the free gear. So, Jessica, I’d love to ask you the same question, but I want to share something real quick that I think is just so fun. I think that the people with optimism right now are going to lead the way to help everyone come through this, and I think that, as sales professionals or business professionals in any of our creeds, it’s time to be that leader.One of the things that we were brainstorming and had an idea with, which I’d love to share with everybody, is just leveraging technologies like Zoom and inviting people in and creating digital connections. I mean, I was imagining an environment where there are wineries out there being impacted. Can we order a case of wine or get all of our friends to order the same bottle, and can we invite the winemaker on to the Zoom call to talk about their wine and how they made it and what to think about it? Things like that, or finding the local restaurant and the chef who can give you the food to make at home and host a Zoom experience, where the chef’s actually talking to you about how they use the ingredients to make that meal, and we could be making it together.This is the stuff where I think we have an opportunity to grab hold of this and really make an impact and be a force of optimism and connection at a time when it’s hard. So curious for you, Jessica. What have you experienced or seen that has been amazing?Jessica:So one of the really cool things … So I’m [inaudible 00:13:46]. We’ve been doing virtual meetings, and those people originally were just very against it, like, “This is never going to work. This is never going to work.” Then, now that everybody’s actually staying at home and doing this, they’re like, “Oh, wait, this does work. It is a way to connect.” Just by seeing someone’s face, it’s so much different than having just a phone call or a text. I think, as a generation, just kind of in this day and time, we tend to hide behind emails and text messages and not really get that face-to-face, where that’s so important in this industry, because they’ll remember you if they see your face, and they’ll remember who you are. They connect with you, and you connect with them the same way.So we’ve been doing that, and even my daughter is doing Zoom meetings with our classmates. She’s, well, almost 15. She’s in a class that is a college-level course they have to continue, because they have to be able to pass the final to get the credit. She’s like, “I kind of hate it, but I kind of love it, all at the same time.” I’m like, “Yeah, well” …Alec:Well, and Scott, I want to ask you the same question, what you’re seeing, but I just want to make a quick observation. I had the crazy idea to just go live and invite everybody in, the whole world, just, “Here’s the link.” I love to see that you guys were the first to just dive in to increase human connection. I mean, that’s the kind of leadership and fun stuff we need to see, and I think if we open the door more, we’re going to find more people who are willing to digitally hang out.To your point, Jessica, we’re doing Zoom calls all over the country right now, and I was talking to our Denver branch today. A bunch of people weren’t on video. I was chatting them all, being like, “Guys, you need to start turning on the video. Get out of your pajamas. Get out of your depression, whatever you need to do to make this work. Do you. Then get on video so we can see each other and connect,” because you’re right. The head nods, the visible … When you’re on a conference call and no one can see each other, it’s terrible, and we all know that. So, Scott, what are you seeing? What are you seeing people do? What are you leaning into?Scott:Thanks. Can you hear me?Alec:Yeah. Loud and clear, dude.Scott:Yeah, yeah. Sorry. Let’s see. No, I think it’s great. I mean, I think … and thanks for including me on the … I actually have, tonight, my college is starting to do class Zoom calls.Alec:Nice.Scott:So it’ll be very interesting. So I don’t go to a huge … It’s not University of Michigan, but there’s 400 to 600 people in the class. So that’ll be interesting. They’re doing happy hours. I’ve been invited to various, and I think that’s just from being [inaudible 00:16:19] a bunch of people and lucky enough to have some good relationships over the last 20 years. So I think it’s great, and I think it’s interesting. It’s almost like a case study-Alec:Totally.Scott:… because, Alec, I love the 100 Video in a 100 Days, right? No, I do. I think it’s great, because I think people always had … In the last couple years, it’s great to see this sort of thing evolve, because whether we’re forced to do it now for some period of time or not, I think some people were really reluctant to do it. I think they were worried about what sort of background they had and what sort of camera they had. Then others were just old and out there and saying, “Hey, just do it. It’s better than sitting there and not doing it,” right? AI really do. I love the 100 video. I didn’t watch every one of them.Alec:Me, neither.Scott:[crosstalk 00:17:10] 100 in 100. Yeah.Nikki:I watched them all.Scott:I know, but I think it was great, and I think it’s interesting that the connection … Like everything else, “We’ve got too many people.” First it was emails, right? You hide behind emails. Then it was hide behind texts. I thought it was great the other day that I had … Not great in terms of me, personally. I thought it was really good in terms of calling some new clients, some that I knew and some that I didn’t. I wasn’t doing Zoom. I was FaceTiming them. So I thought they were going to think I was [inaudible 00:17:44], but it was great. It was laughing with people, telling jokes, yelling at their kids. It was stuff that I don’t think I would have ever come across, getting on an email or a text.I think it just increased our chances, because it makes you more human, if you put a face, and I don’t have the prettiest face in the world, as you can see, but you put a face behind the name, and I love it. I love people like you, Alec, and others who have kind of trailblazed. I think it’s just a good thing, and you don’t have to be perfectly spoken and say everything. You’ve just got to not say the wrong things, right?Alec:Yep.Scott:Whether you’re wearing a T-shirt or a tie, just wear something, right?Nikki:Right.Scott:[crosstalk 00:18:28] as well.Alec:Yes, at least up here, because the video is right here. Down there, I don’t know what’s going on. [crosstalk 00:18:33].Jessica:I’m not going to lie. I’m probably in yoga pants. It’s fine.Scott:I looked into Zoom a little more. I’ve always had it to be in meetings, whether it’s my days back with you guys, Alec, and then before, just being in meetings, but I’ve looked into the Zoom Rooms and everything and how much their technology has developed. It’s amazing. That’s amazing.Alec:It’s amazing.Scott:It’s amazing, and I think it’s under-utilized technology. I think people are using it more, because, like I said, we have to. I just think people that are good at it and not so good at it better get good at it, because it’s just one extra thing that we all could be doing to help ourselves out.Alec:Hey, Troy, I’m going to punch you down for a second and bring in … You’re still with me, but you’re just downstairs. Now here, we’ve got to bring Sean in here. He’s been waiting patiently. What’s up, big guy?Sean:Oh, what’s happening, man? How are you?Alec:So, Scott, I want to go off what you said. I think leadership right now is going to be defined by vulnerability, by our ability to make ourselves uncomfortable, to put ourselves out there, and you can’t hide on video. You’re there. People are staring at you. Everything’s there. I always laugh hysterically, to a degree, because I’ll use the mortgage background as an example. So many local mortgage pros love meeting with clients face-to=face. They say it all the time. “I just want to meet with people. I love it.” Then those same people are like, “Well, you can meet with 1000 if you just turn this thing on your face,” and they’re just like, “Nope, can’t do it.” I’m like, “You don’t bring a stunt double in when you’re meeting someone face-to-face and doing an application.”So it’s time. It’s time to get vulnerable and put ourselves out there for our businesses. Brian, your business is going to evolve dramatically, being digital for a period of time. [crosstalk 00:20:24]. It’s hard to do jujitsu without a buddy.Brian:Yeah, yeah.Alec:So, Sean-Sean:Virtually, you tap out.Alec:… [crosstalk 00:20:36]. Yeah.Sean:Virtual tap. What is that?Alec:By the way, and I’ll go a little bit off the Richter here, but my wife’s 40th is coming up, and, obviously, the 85 people that were coming, we’re not going to have it. I was talking about the virtual reality world. There’s somebody right now who’s using Oculus Rift [crosstalk 00:21:05] to figure out … Oh, there’s our kids coming in, to figure out how to create a virtual hangout where we can go and put on the goggles and, all of a sudden, we’re in a room with people and we can look around and see them and walk around. We don’t know how long this is going to last, and that could be a potential reality, but we’ll never replace [crosstalk 00:21:27]. I think that’s going to be a miss, the thing that defines this period of time for all of us. So, Sean, what are you seeing people do digitally to connect?Sean:Well, I’m telling you right now, for those of us that do have kids, any of the kids that have been playing Roblox, they’re winning right now. They’re winning. They’re just so much better at this than we are, and that has been a big realization. I watched my 13-year-old and my 7-year-olds [inaudible 00:21:55] and play Roblox on the Xbox. I’m like, “What are you doing?” They’re like, “We’re building the city, and we’re going to go visit our friends.” Now this is my real life. This is what I do.Washington State, we now have a stay at home situation. It’s pretty much a shelter in place, and you have real estate agents who … The Northwest MLS just recently said, “You can’t do business the way that you would normally like to do business,” and that has been eyeopening. I’m helping numerous realtors right now with just doing video. I think that, as being in the mortgage industry and outside of it, there’s a lot more avenues than what I thought would actually be available to help us. To quantify that, I’ll say things like Mortgage Coach. I’m a huge subscriber, a huge friend, a huge follower of that. What Dave Savage has been putting out in that community has been amazing. He’s had Phil Hillestead on there recently, incredible stuff, as well as some other loan officers who were just talking about how they’re using video.At Loan Depot, we’re pretty fortunate to have Vidyard, which, also, we’re retargeting. So retargeting is another way to stay social [crosstalk 00:23:05] whole another level. It’s kind of like that box where, on Amazon, like, “Oh, I just looked at that,” and now it’s-Alec:Now it’s following you.Sean:… on your Instagram. It’s on your Facebook. Now my face comes up on there whenever I use Vidyard. So I went full board, man. I went and got the backdrop, the light ring, the Yeti microphone. Yeah. So we got that [crosstalk 00:23:26].Alec:There it is.Sean:So all of that, just in order to make sure that things are great, but right now I just started interviewing multiple professionals. I’ve got one coming up later today, and just talking about different things that add value. I saw that right now, for Facebook paid promotions on your business page, what a lot of people are saying they’re getting are between one to two pennies per paid boost for a view. So you spend 20 bucks, right now, you’re getting anywhere from 1000 to 2000 views. That’s pretty dang good. I don’t care what [crosstalk 00:24:09].Alec:I want to add to that, Sean, for other people that whether they’re into Facebook posting and boosting specifically or not, there’s another area of opportunity for us as local professionals, which have to do with our local restaurant owners. Those people are massively impacted.Sean:I’m taking elderberry, but I’m totally with you, dude.Alec:Yeah. You triggered me, because the reality is those people-Sean:Terrible. Go ahead.Alec:… are having a hard time, and your ability and all of our abilities and anybody’s listening ability to find those owners, to interview them, like, Sean, you said you’re doing with some of your realtors, to interview them and let them tell their story and encourage people to come pick up from them on a certain day, like, “Hey, Thursday, we’re all going to go pick up food from this guy’s sushi place” or whatever.Sean:Yeah, I’m doing one of those for someone, and I’m just saying, “Look, I’m going to buy the next three people that comment or want it Uber Eats from that restaurant. My treat,” something like that. As long as Uber Eats is around, or we’ll do a gift card or something, I am very, very grateful, because especially being in the house, I’ve got four kids and-Alec:God bless you, man. I’ve got two.Sean:Yeah, it’s incredible. So I’m just like, right now, when all of the restaurants that were allowed to deliver alcohol, I was like, “Gosh, thank you. Thank you so much. You are listening. You are.” That was exciting for me.Scott:Hey, I want to [crosstalk 00:25:41]-Alec:Jump in, Scott.Scott:… the best, Alec, and sorry for jumping in. I’ve got to jump out. I’ve got [crosstalk 00:25:45].Alec:See you, buddy. Thanks for hanging.Scott:Thanks so much. Best of luck, everybody. Be safe.Alec:Thanks. You, too, buddy. Yeah, and if you guys ever want to jump out, don’t worry. My feelings won’t be hurt if you disconnect. This is just like an open door neighbor … You’re walking by the neighbor’s and hanging out. By the way, Sean, tag Savage. Let’s see if we can get him to come hang out for a minute. That’d be funny. That’s the other thing with digital that’s crazy, is we can just tag people right now and pull them into our digital open house.Nikki:[crosstalk 00:26:11] would jump in on my sip and stretch. I’m doing Facebook Live yoga with a glass of wine.Alec:Yeah, Nikki, you’re terrible. All right. Steve, can you hear us?Steve:Yeah. Can you hear me?Alec:It’s a little lagged, but yes, you’re there. I love that you joined, dude, and I want to hear your perspective, because, for those of you who don’t know Steve, this guy has been a connector of people forever. Yeah, Sean, I just muted you a little bit. You had a little background noise, but I love you. So don’t worry. You’re not going anywhere. You’ve built a career on connecting with other people. Fair?Steve:Yeah, absolutely, just all [crosstalk 00:26:56].Alec:But you’ve done it, typically, over the phone. I mean, because they’re all over the country. So Steve’s been a massive recruiter and connector humans for forever, almost, at least for as long as I’ve been in the business. So you were a connector of people over the phone, and now we don’t get to see people physically. What encouragement would you give to people who used to connect physically, don’t have that anymore, and are trying to connect with referral partners [inaudible 00:27:23] customers? What are you seeing? What would you do?Steve:Hey, this is all uncharted territory for me as well. I’ve been here for a month, and I have jumped in to the deep end, luckily with guidance from you and Shane. What you guys have done at Loan Depot in just leveraging Vidyard and online is just significantly different than I’ve ever been exposed to. But it’s neat, being able to pull people in and do the video calls and just have that same connectivity as you would, I’m sure, with borrowers or realtors when you’re engaging with them, and it just feels natural, because we’ve been locked up for the last few weeks. It’s almost like people are open to and willing to do that. It feels like it’s the right thing to do right now.Alec:Yeah. Yeah, it’s great. Nikki, I’m going to put you in the background, but don’t leave. You’re still here. I just noticed that Troy can hang with us. So you’re back, dude.Troy:Hey, welcome back to me.Alec:I’m trying to figure this all out myself. Oh, my dad’s posting. Click the LinkedIn. I’ll pull you in here. Oh, no, he’s probably still in his pajamas, although I had a hysterical comment that Anthony has … Sorry. He has changed out of his morning pajamas into his afternoon pajamas, though. He’s ready to get going.Brian:It’s about that time. Yeah.Alec:Yep, it’s about that time. So, Troy, kind of going back to you, explain how your business is affected, what you’re doing, and how you’re navigating this crazy new world.Troy:Well, I mean, we’re affected in a lot of ways just because of the geography here in Northern California, and also in Southern California, you guys are affected, too, by the jumbo space and all the uncertainty there, just [crosstalk 00:29:10] for investors. So we’re kind of having to rethink how we address the jumbo loan amounts, what’s first and second combinations, stuff that a lot of us haven’t done for several years, both high balance first loans and a second to get to a solution for those lower down payment or even jumbo loans that were available a week or two ago.Then that’s changing, as you know, day to day and hour by hour, in terms of what we’re seeing there. But we are pressing forward with our traditional mortgage business, the conventional, the govie business. That’s still very, very busy. It’s very busy. So I think we have to focus on the things that we have available in terms of opportunities, and I think the other stuff is going to come back in time.Alec:Yep. Yeah, it is a time to be flexible and figure this stuff out. Brian, I’m going to put you down for a second, and I’m going to bring in Dan, who figured it out and pushed the button. Dan, can you hear us?Dan:I can.Alec:Yeah, you’re loud and clear. So I had this crazy idea that I was just going to go live and just put the link out, invite anybody who wanted to come in to come in, and talk about how we’re managing this crazy world, but also in the frame of now’s the time for our sales leadership and our salespeople to lean into new technologies, to figure out this new digital world and start to create human connection, because we don’t have it physically. How do we open the door and say, “Well, come on in,” in a digital world? So I just tried to see what would happen today.Dan:Yeah. I still have no idea who your actual father was.Alec:I can ban you from this stream.Dan:Oh my God, that would be the end of my life.Alec:So, Dan, can you share your perspective a little bit? How are you managing this new digital world, this new shelter at home place? Not all states are shelter at home, but more and more people are just self-quarantining. How do you see the world coming through this? What’s your perspective?Dan:Well, obviously, everybody has their own set of circumstances. On one hand, I have a very good friend of mine who got the coronavirus and has spent the last 20 days suffering with this thing. Trust me, he’s not an old dude like me. He’s younger, and he’s going to persevere through it, but it’s been a rough siege. So you have people who really, unfortunately, were unlucky and contracted this virus. So people who don’t take it seriously, he’s making sure people understand they should. That’s obviously the most unusual thing of it. This is not the first time the world has had viruses and bugs. Every year, influenza kills 50,000 people a year.Alec:Yeah, and we just kind of ignore that.Dan:Yeah. Those 50 are okay. We can just keep the economy going. But this is a serious problem, and social distancing and lockdown is the only way to really stem the infection from becoming viral. We’re going to have to adhere to it as much as we can. On the business side of the world, this reminds me so much of 2007, 2008, which I unfortunately enjoyed as well, which the whole world-Alec:Enjoyed.Dan:… financial world collapsed. This is actually worse, because that was really relegated to the financial markets, which impacted businesses for financing and such, but it didn’t really impact people personally and close businesses like this one does, I was talking to a guy yesterday who owns a daycare center. Can you imagine a guy who owns a daycare center? Business is not good. Who would have thought a daycare center would be without kids, right?I mean, so this is a very, very difficult thing, and the government has passed an unbelievable stimulus package that is an attempt to help all those that have businesses that just, for no fault of their own, ended up in this environment. On the mortgage side, the good news is … and I think that the guy just before me said the right things, which is, look, the only place that has liquidity now are the banks, because they have your deposits and they can do jumbo loans, and the federal government, which is the GSEs, Fannie, Freddie, thank goodness.So the mortgage bankers like ourselves are going to be destined to be using those tracks, because that’s what [crosstalk 00:34:01] and the banks … By the way, the banks have a myriad of issues. If you think it’s bad for us, the commercial market is getting decimated. They don’t have federal liquidity in many respects. Besides Fannie and Freddie doing apartment loans, commercial loans are all private sector capital, and that is a scary place to be today.So I don’t know what’s going to happen there, but, obviously, I think this is a great idea, son, because people are going to have to learn how to share their challenges. I just got a note, and I won’t dominate this conversation any longer. I just got a text from one of our restaurateurs here in Newport who’s closed, of course. Basically just said to everybody who was one of his customers that he and his staff are available for home delivery, taking food to loved ones that they can’t reach. Whatever they need to do, the restaurant staff is available, which I thought was pretty cool. Maybe we’ll all be better neighbors when this thing gets passed through.Alec:Yeah. I know. Jessica, I’m moving you around here, so sorry, but you’re still with us. Hi, Nikki. You’re back. You’ve been patiently waiting. So I think that, Dan, you’re totally right. Our opportunity now is to connect and support our restaurants, support our small businesses. Brian, who’s in the background, jujitsu gym, it’s hard to roll around with another person virtually. At least my CrossFit gym could send gear home.But we’re all trying to adapt and survive, and I think that our opportunity is to lead with human connection. If we figure out the technologies and lead in that space, we can absolutely start to create more connection. If you’re in business of mortgage, any type of service industry, you need human connection now more than ever to continue to create your opportunities for yourself and for your business. So I think that’s what we’re facing.So I’m going to wrap us down here, guys, and I’ll bring Brian back for one second, because he’d been patiently waiting and I want everyone to know that you should call him for jujitsu lessons virtually. This is our opportunity. I want to thank you guys for being bold and just joining a random link and sharing a conversation, because the more we do that, the more we create human connection, and the more we have an opportunity to serve other people. I think, coming through this, when we can go give hugs and handshakes, they’re going to be very welcome. So thank you guys for jumping in here.Dan:Amen.Alec:Everyone have a wonderful day, and I’ll see you online.Dan:Stay healthy.Nikki:See you soon.Alec:Stay healthy, everybody.Nikki:Bye.Alec:That was a really fun experience for me. Thank you guys that were willing to be bold and jump in in an uncertain time and an uncertain place, because I think that’s what leaders need to do, and I think if you are in sales today … I’m just checking any more LinkedIn comments for let you guys close this thing down. I think if you are in sales today, there is no better opportunity than for you to make human connection. I’m just going to leave it right there. Master the tools, play with it all, and we’re going to rock and roll. I hope you guys have a wonderful end of your day. Shane, you can be here for two seconds. I’m finishing up.Shane:That’s the best part. That’s the best part.Alec:You were here. You were here, and I can’t leave you hanging. I was like, “Okay, I’ll let them in for one second.”Shane:Oh, that’s so nice of you. That’s so nice of you. You’re a giver.Alec:I am a giver. All right. Good luck, Shane. He’s out. I’ll call him later to apologize. It’s been 37 minutes. God bless you guys. Stay safe, stay digital, and I’ll see you online.

Choose Human Connection

In times of uncertainty choose human connection over fear and isolation

In this edition of LiveTime with Alec:

  • You will figure out if you are driving uncertainty.
  • Bring the Good News!
  • What service do you bring to your clients and those around you.
  • Stop thinking about your content. Create HUMAN CONNECTION!

Episode Transcribe

Hey, what’s up everybody? Good morning!

What a wild ride this is. I am just shocked.

Shocked every day when I’m watching the change and the chaos, and the world just pivoting. Pivoting every moment, it feels like.Thanks for joining me live today. Would love to make this a little more interactive session. I got really inspired last night at like 2:00 AM. Could not sleep. Just had to…Hey, good morning, Richard!Could not sleep. Had to get my thoughts out. I was like, I’m going live today to talk about it because there’s a couple of things happening that are fascinating in this mini-quarantined world of safe distancing, and social distancing and all the things that are going on.I think we’re missing something. There’s a lot of mortgage professionals, because I’m connected to a lot of you and God bless you, you are amazing human beings. What I’m watching a lot of you do is turn the camera on, many for the first time. And it’s incredible and you’re leaning in and there’s probably… In my feed, there’s like tons of people who are like, cameras on, they’re like, “Hello! By now with the Coronavirus, you’ve probably noticed rates are going…And then they give their spiel. I love it. But I’m also a little bit, I don’t want to use the word turned off. It’s not that I’m turned off. I’m excited people are embracing the digital and the connection. But I don’t know if we’re missing it or not, or if you’re missing it or not, but answer this kind of truthfully, “Are you making intentional human connection?”You know, I think a lot of people right now, they’re doing the digital game because they have nothing else to do. You’re at home. You’re quarantined. So you’re just like, “Well, I guess I better film myself.” Because they’re talking to people. But are you turning around and calling people? Are you making real human connection? Because in a world of isolation, when we’re all pulling back, are you leaning in to human connection?I mean, there is no better time right now, if you’re a mortgage professional, than to pull up your CRM and just start dialing through the system. Everyone that you’re going to be talking to is at home, or maybe they’re at work. But they could be at home, quarantined with their kids because schools are closed and things are crazy and they’re trying to help their spouse or their wife or their husband manage the kids.Are you reaching out to say hi? I think in this time of isolation and fear where people are hoarding toilet paper… I don’t know. I don’t know. I think that we’ve got to lean into real human connection. You know, it’s funny, because for me, I’m a natural introvert. And everyone that watches this or has seen me talk is like, “No, you’re lying.” And I’m like, “No! No, no, no.”Stop judging introverts. We’re not just like, live at home and we put a blanket over our head and we hide out. The best definition I’ve heard of the difference between an introvert and an extrovert is that an extrovert receives and gains energy by interacting with other human beings and hanging out and partying and being with people. Whereas an introvert expends energy to hang out and to talk to people and to, you know, do this.And none of that has to do with, “Do you like hanging out with people?” Or “Do you like speaking or putting yourself out there?” Those two definitions, they don’t mean that stuff. But I love that because it’s true. For me as an introvert, I get energy. I have to recharge. I got to go have alone time. Whereas my wife, God bless her, she thrives in human interaction. If you ever hung out with my dad, Dan, whew! Talk about a guy who loves hanging out and getting energy off human interaction, he can go all night.So, in this time of isolation, when people are practicing social distancing, not going to social gatherings, some are even on shelter in place and they’re not talking to other people. How are you as a mortgage professional, as a relationship professional, engaging and connecting with your community?I don’t think a video on social media is enough. I don’t think it’s enough. I don’t think showing one more stupid candlestick chart is making human connection. Just going to say it. I’m just going to say it, “Stop it!”Or look, maybe I’m wrong. Maybe that’s working for you. And you’re creating dynamic human connection by posting the candlesticks and being like, “Look at the rates!”I think right now our communities may be focused on other things. I think that an intentional conversation and a call… Tell me if I’m wrong. I mean, you’re watching right now. There’s a bunch of you guys on Facebook and LinkedIn and YouTube right now. Comment. Tell me, am I wrong? Are people making intentional human connection? Are they reaching out to past… Not just with friends and family, which I’m sure some of you are doing. But are you doing it with your past customers, with your realtor community? I mean, I know people who aren’t going to open houses right now, so they’re not connecting with their realtor partners out in the wild.Jeff has an interesting question. The question I have today would be, “The mortgage-backed security market, and whether these instruments will be sold consistently and whether the market will dry up causing companies to fold, especially non- QM?”You know, I think Jeff, the questions you’re asking and exploring as a mortgage professional… We’re in unknown territory, unknown territory. I mean, we’ve never had the hype and fear of a pandemic virus like we do on the Coronavirus. We have no clue. You know, we have appraisers potentially canceling appointments and not showing up for our customers. We have recording offices and title companies working from home or shutting down or trying to like repivot. So they can’t help record the loans.It’s unprecedented times. I think in those times we can either try to stir the pot, and I see a lot of people stirring the pot. They’re posting things that in my opinion, drive more uncertainty into the market because they’re spinning up instead of being a force of calm and a force of human connection.I think if we could predict these things and if we knew what the future was going to hold, we would be capitalizing on it, leveraging it. We don’t know what the future’s going to hold. We know what today’s going to hold, right now, this moment. And Brooks on Facebook said, “Everyone’s posting, but not necessarily connecting.” Man, that is so dead on! So dead on.I’ve seen some amazing people talking about how with this uncertainty, are companies going to go under? Possibly, but man, we’ve survived so much more chaos in this world. We are hard hardened humans. We have the capacity to withstand tremendous hardship in our worlds, don’t we? We have amazing capacity. But it’s connected to our human connection. It’s not connected to our isolation.So circling back Jeff, to your question, “Are companies in a full, non-QM markets? Is there going to be a change?”Yeah! Can I predict who it’s going to be and what it’s going to… No! But are there capital markets issues? Are there hedging issues? Are there problems at massive scale that the industry and the nation is facing right now? 100%! What can you control in that space?I don’t think much, because I can’t control much. What I can control is my ability to connect with human beings and bring good news. And the good news for many of our customers right this second is they’ve got more equity in their homes than ever before. That’s a national statistical fact. They have higher credit profiles than ever before. That’s a statistical fact. And you have the ability to connect and serve them in the biggest financial debt of their life. But you can’t do that if you’re just posting videos about candlesticks. You can do that by calling them, by reaching out.I don’t know, tell me if you think I’m wrong and throw another comment in. I’d love to understand what your guys’ viewpoint is. And from an introvert who enjoys time alone, this is a tough time for us, for me, to make intentional human connections.I’ll be the first person to raise my hand. I mean, this is what was keeping me up at 2:00 AM last night was, I’m like, “When was the last time I called all the people important to me that work around me just to check in?” Not a work call, not a how are you doing this or how you solving this? But just to ask, how are they doing running their operation? How are their people doing? How can I be of service? How can I help? Man, I was totally convicted of it last night. And if I’m convicted of it, I know a lot of us out there aren’t doing it either.That’s my encouragement today. That’s my encouragement today. Keep posting on social media, please, and keep sharing education, please. But be focused on your comments and on your content.Are you driving uncertainty into the world? Are you driving confidence? Are you driving human connection? In a world where a lot of us are sitting at home, I think the time for human connection is more important now than ever. I don’t mean human connection, like posting a video on social media about the bond market. I think the average human being at home whose kids are there because they can’t go to school and their spouse is trying to figure out how to homeschool or how to deal with that. I think they’re way more focused on that than they are on the inverted yield curve or whatever else you’re spewing on your channel.Look, it’s not a judgment call. I’m not trying to come at anybody right now. I’m just trying to share a thought that I’m personally convicted by… Hey Gary!”Awesome message, Alec.”Thank you. Thank you, man.I think this matters guys, this matters. In a world gone crazy, you get the chance to be the human connection, the link in the chain to reach out to not just past customers, but your title company partners, your escrow partners, your realtor partners, your appraisers. When was the last time you called your appraisers to check in? And if you say, “I don’t know who my appraisers are.”How about your notaries?I think it’s low hanging fruit. I think that’s what real leadership means right now, is how much are you willing to drive human connection?That’s really all I have for you today. You know, I try to keep these relatively short. Today we’re at 12 minutes going so far. If you have questions about anything, I’m happy to answer them, but I think today the most important issue is, call someone. Really call them, FaceTime them. There are people out there who are struggling, who are sad, who are frustrated, who see that maybe this isn’t going to end anytime soon. That’s what we can do. That’s how we can make an impact. Drive human connection.I love you guys. Appreciate everybody jumping on and watching for a little bit. I hope you have a great day. I hope you hit the end of this video. You click it, sign it off and you go call someone and you tell them you’re thinking about them and you tell them you care about them, and you ask them how you can be of service.Have a wonderful day, everybody. See you, guys.

Modern Lending Podcast | Milton Manolis

Alec has Milton Manolis, Retail National Renovation Sales Manager, comes in to talk about the aspects of renovation loans and how he brings about a unique sales proposition to today’s industry

Your Snippet of this episode of the Modern Lending Podcast:

  • Tell your customer to stop looking for the perfect house.
  • There is untapped potential for a Renovation loan
  • Prep the perception; education on what questions to ask
  • Simplicity is key so don’t overthink

Episode Transcribe

Alec Hanson:What’s up modern lending podcasters? Buckle up.

We’re going at Episode Five right now.

 I’m bringing in Milton Manolis and we’re going to absolutely unpack and transform your business with the world of renovation loans. Guys, you are missing the boat if you’re not focusing on how this product, conventional, FHA and VA renovation can transform your business. We’re dropping golden nuggets from the sky, all day long. Here we go, let’s kick it off with Milton.All right everybody, here we are, another episode of the Modern Lending Podcast and like I said in the introduction, I’m here with Milton. This is going to be epic. Because, for those of you that have followed several of the podcasts, thank you by the way, that you for subscribing, thank you for listening, thank you for sharing, appreciate the love. This is a fun topic today, renovation. Renovation’s a fun topic. Milton Manolis:It is.Alec Hanson:A scary topic for some people.Milton Manolis:It is.Alec Hanson:But it’s really a game changer in the industry, on how you use it, on how you save transactions with it and so when I was kind of thinking who I wanted to bring on the podcast, Milton you were like right on the top.Milton Manolis:Oh thank you.Alec Hanson:Because you’re running our renovation platform nationally and you’re out there spreading the good word, you’re doing seminars all across the country. You’re really educating people on the power of renovation loans and so, let’s bring it to the podcast. Let’s bring it to everyone out there who is listening and say, “Why aren’t you using this incredible tool to grow your business?” And so before we get into the tactics and what you’re doing with it, let’s give everybody some of your background. Where’d you come from? How’d you get in the crazy mortgage world? What’s going on?Milton Manolis:Yes, thank you for having me Alec. Alec Hanson:Of course.Milton Manolis:Very lucky to be here. Born and raised on the south side of Chicago. Alec Hanson:Sorry about that.Milton Manolis:Well listen… And I try to hide that accent.Alec Hanson:No, bring it out. Let it flow.Milton Manolis:Oh my goodness, when I do these realtor events, I tell them, “Try and guess where I’m from?” And in the beginning, they picked it up right away. As we went on and they had a harder time figuring out it was Chicago, then I knew I was doing it right, right?Alec Hanson:Of course.Milton Manolis:Because I’m trying to… Basically, born and raised, south side of Chicago and I started very young, I entered the financial markets and I was a stock broker at the age of 19.Alec Hanson:What made you do that?Milton Manolis:I always loved numbers and I always loved to research and that’s what I was doing when I was a little kid.Alec Hanson:You’re like, stock broker.Milton Manolis:Yeah, that’s it. And I had some friends that got into it. I got sponsored. Became a broker, loved it. Had a blast. Alec Hanson:Didn’t you say you were the youngest?Milton Manolis:Yes, I was the youngest series seven.Alec Hanson:Dude that’s awesome.Milton Manolis:Yeah, for about, I think it was about six months or so.Alec Hanson:Before some other young-Milton Manolis:Yeah. Alec Hanson:… pup came in.Milton Manolis:Right, exactly. But it was a different business back then, right?Alec Hanson:For sure.Milton Manolis:It wasn’t so much asset management or money management as it is now, right? Alec Hanson:Yeah.Milton Manolis:You were more doing that research, making those recommendations and that took a toll on me after probably five, six years. I had to bow out. It was just way too stressful. Alec Hanson:The doctor said, “You got to get out of the stress.”Milton Manolis:Right, yeah. The doctor told me, “You need to change jobs. The stress is just doing you in.” And so I had a buddy of mine in the mortgage business. Alec Hanson:Oh my God.Milton Manolis:And I thought-Alec Hanson:Yeah, so what stress could there possibly be?Milton Manolis:… exactly.Alec Hanson:In the mortgage business.Milton Manolis:That’s right. And that was back in the mid-90s. I’m like, “So you’re just calling people and helping them save money?”Alec Hanson:Yeah, that’s it.Milton Manolis:And he’s like, “Yeah.” I’m like, “Well, how stressful could that be? I’m in.” And that’s how it started. That’s how I got into the business and I loved it because it was great to be able to interact with people and really help them save some money and I really had no reluctance. I understood how to overcome objections.Alec Hanson:Well that’s probably because you’re trained as a stock broker.Milton Manolis:Right.Alec Hanson:That probably gave you a big leg up when you came into mortgage and like, “Hey, call these realtors.” You’re like, “No problem.”Milton Manolis:Yeah, exactly. It didn’t matter. I didn’t know anything.Alec Hanson:I’m hiding in the corner, like can’t handle it, but you’re just like, “Yeah, let’s bang the phones.”Milton Manolis:That’s my first night there, that’s all. I took like five apps the first night. I knew nothing and I just picked up the phone and started telling people what they could save.Alec Hanson:Everyone out there is like, “I hate this guy. First day of the business, took five apps. Doesn’t know a thing.”Milton Manolis:Right, but that’s how I cut my teeth.Alec Hanson:So how did this end up… Man, you really have a passion for renovation.Milton Manolis:Yes.Alec Hanson:So, how did your career go in that route?Milton Manolis:I’ll tell you, one of the things I learned early on is you need to have some type of unique selling proposition, right?Alec Hanson:Have some kind of niche, yeah.Milton Manolis:Right. And so I would say, back in 2004-ish, right around there, 2004, being in Chicago, there was a lot of competition.Alec Hanson:Oh, I remember.Milton Manolis:Yeah, it was the heyday and I needed something to separate myself, so I went to a HUD workshop and I thought, “Okay, let me go to this eight hour HUD workshop and see what they’re teaching everybody about 203(k)s,” right? And seeing, “Hey, is this something that could give me that edge?” I went there and I spent all day there and it was brutal, but-Alec Hanson:Eight hour HUD workshop.Milton Manolis:… right, yeah. Alec Hanson:Sounds thrilling.Milton Manolis:Right, so by the fifth hour or so, they started calculating the loan amount and how you calculate the loan amount. And in that little nugget is where I found what I believed would give me the edge I needed, right? What I needed, the talking point that would bring value to my realtors and to my clients and so that’s what I ran with.Alec Hanson:Well see Milton, I love this only because to the parallels today is so relevant.Milton Manolis:Right.Alec Hanson:Competition is massive today. Just as it was in the pre-crisis days. There’s loan officers out there everywhere looking for a niche and they’re coming up with tag lines and slogans and trying to figure out how to differentiate themselves and so the same process you went through, people are going through right now. And so, when you found this niche, how did you play it?Milton Manolis:Yeah, so basically, the first thing I did is, I went to my agents and basically started talking to them about that value prop, not as a lead, but in the beginning as a backup, right? Because even myself, I wasn’t sure how exactly it would work, so I wouldn’t lead with a 203(k), but I would let them know that it’s a great insurance policy, right? Because even back then, you had issues coming back on appraisals with all these repairs and homes that were dated and people wanting to update or upgrade their homes and so that’s what I used it as a tool first to get me in the door and bring value to them that other people are not bringing. Alec Hanson:So it’s specific to the variance? Is that because-Milton Manolis:Correct.Alec Hanson:… okay, so let’s break this down.Milton Manolis:Okay.Alec Hanson:Let’s go peel the door back and bring it in there. Milton Manolis:Okay.Alec Hanson:You discovered in the HUD workshop that there’s a variance to LTV.Milton Manolis:That is correct.Alec Hanson:So how does that function? How does that work? What’s the guideline?Milton Manolis:So back in the day when they were putting this program together, they basically, the brilliant things that they decided was they knew that not everything a customer would do to a home would give them dollar-for-dollar value, right?Alec Hanson:Right and there [crosstalk 00:07:06] wouldn’t be total.Milton Manolis:The home is supposed to have a good roof and windows and siding and whatnot, so they said, “Okay, well let’s give them a little cushion there. Let’s give them a ten percent cushion.” And so-Alec Hanson:And we’re talking specific to FHA?Milton Manolis:… 203(k), that is correct.Alec Hanson:203(k) right now, good, good, good. Because there’s a lot of renovation programs we’re going to get into.Milton Manolis:Correct.Alec Hanson:But they allow an LTV variance. So how does it work?Milton Manolis:So basically, they’ll let you go to 110 percent of the subject-to value. Now technically it’s 96 and a half of 110, right? Because that’s how you calculate the FHA base loan limit, but for purposes of our conversation, you can go to 110 percent of the appraised value.Alec Hanson:Yeah, people today don’t even know that. People that are listening right now are like, “What did he just say?” They don’t realize with a 203(k), you can lend to 110 percent of the subject-to value.Milton Manolis:Correct.Alec Hanson:That’s a deal saver.Milton Manolis:Exactly the point.Alec Hanson:So this was your ace card?Milton Manolis:That’s right.Alec Hanson:You walked around with this.Milton Manolis:Exactly and so when I first heard it, I was like, “Wait, how does this [crosstalk 00:08:01] work?” And I started doing all the math, right? Because I love numbers and was running all these different scenarios and then I started doing research on what exactly is a 203(k) appraisal. What is it? And it’s a subject-to appraisal.Alec Hanson:Yeah, I was going to say, “What is it?” It’s a subject-to-appraisal.Milton Manolis:When the appraiser marks subject-to, they’re telling you what the future value is going to be based on the repairs that they called out.Alec Hanson:Okay, so I want to hit this at a different because I’ve heard you speak before, so I knew kind of what I was going to get into bringing you on here, but I love this because there are a lot of mortgage professionals out there, myself included, even when I was originating, who would get a subject-to appraisal and be like, “Ugh, I got a mess on my hands. The seller probably doesn’t want to fix this. What am I going to do?” And it always was a mess. And your niche, your little card said, “No, no. This is an opportunity.” Milton Manolis:Correct.Alec Hanson:Did it work?Milton Manolis:It worked wonderfully.Alec Hanson:You built a bunch of relationships with this?Milton Manolis:I did, yes. And still have one of my best relationships.Alec Hanson:Awesome.Milton Manolis:But it gave me the confidence and the power to go in and tell them, “You know, you can’t really afford to work with anyone else. You have to work with me because you’re not going to just call on me when you have a problem.” Alec Hanson:I need to be your guide.Milton Manolis:Exactly.Alec Hanson:So did you get turn downs? In the beginning, we’re you getting people who had subject-to and kind of didn’t know what to do, they’d flip them over to you or was this just a relationship building tool?Milton Manolis:This was a relationship building tool. I did get turn downs, but that’s not how I presented it.Alec Hanson:Right.Milton Manolis:I really presented it as, “Look, this is the value proposition I bring to the relationship, right? You don’t have to worry about your commission, okay?” And the three things I tell them, even to this day is, “How these loans protect their reputation, their customer and their commission.”Alec Hanson:So I want to break that down because we do actually have real estate agents that listen, which is epic. So we want to share this with them and get them educated, but I kind of want to kind of finish your storyline here in your career. So, you went out, started to niche the 203(k) option-Milton Manolis:Correct.Alec Hanson:… built your business up.Milton Manolis:Correct.Alec Hanson:And then, fast forward now, you’re running the national program for Loan Depot.Milton Manolis:Correct.Alec Hanson:How did that all happen?Milton Manolis:Just opportunities keep rising, you know what I mean? And when you get out there and I… Listen, being in sales since I was effect teenager, right?Alec Hanson:Yeah.Milton Manolis:One thing I really enjoy more than selling myself, is teaching others how to sell and I take joy in seeing other people become successful because of something that I helped them do, right? So that’s kind of what drives me and leadership role for renovation I think just sort of evolved naturally because of that drive and I’ve very blessed because of it. Alec Hanson:Well, okay. So let’s go behind the scenes. Milton Manolis:Okay.Alec Hanson:Like the Milton presentations that you do. For listeners out there, okay, now let’s pretend you’re part of the experience here. So I want to set up a couple of things for you and then we’ll let you knock it down because I think loan officers are missing an awesome opportunity with renovation. First of all, I think everybody understands in a lot of our core markets, we have inventory problems. There is not enough houses for sale. I think that problem is going to continue to get worse in 2020. I think there’s just not going to be enough inventory. Hook that on the side. That’s where renovation loans obviously comes in and plays a huge role.Milton Manolis:Correct.Alec Hanson:The average homeowner, statistically, depending on what you Google, is going to spend anywhere from 18 to 25 thousand dollars on their home in the first year.Milton Manolis:Correct.Alec Hanson:So, all of a sudden now, we have another opportunity because it’s like, “Well, where are you going to get that money? You going to put it on a high interest credit card? Do you have it saved up? Where?” Because very easily it could be a renovation loan. And so you kind of have all these opportunities like those bucketed around and then you come into town. Talk to everybody. What are the themes and messages that you hit in your presentation to 400 realtors in a hotel lobby or whatever it is, hotel convention center thing? What are the key messages and the CliftNotes version because we don’t have four hours to go into it.Milton Manolis:Right on.Alec Hanson:But, what do you got?Milton Manolis:The first thing I’m going to say is exactly what you just said, right? I have to let them know and part of the thing they need to understand is that they do spend upwards of $25,000 dollars in the first year, year-and-a-half of buying a home, but they do not communicate that to us. When they walk into a house-Alec Hanson:When you say us, you mean the loan officers [crosstalk 00:12:11].Milton Manolis:… loan officer and their realtor partner [crosstalk 00:12:14], right? When the real estate agent is showing them a home and they walk in and they look at a kitchen from the 60s, they’re just going to turn to the agent and say, “I don’t like the house.” But it’s really because they’re thinking about, “Where’s that money going to come from?” And they’re not going to tell us as the loan officer, they’re not going to share that with the agent, but that’s part of their decision process. Once they understand that, then we can incorporate that into a successful transaction. So, what we talk about is, how to identify those and how to let them know that up-front, that they have that option. They may not use the option, but renovation loans not only help you convert these transactions and help you go from a crisis to a commission saving these transactions, but people need to stop looking for the perfect house. One of the things I talk about Alec is all the HTGTV shows, right?Alec Hanson:Oh, they’re huge, they’re huge.Milton Manolis:Yeah and everybody sees them and they think, “That’s what I want.” And that does not exist. Okay?Alec Hanson:No. It’s a make believe TV show.Milton Manolis:Thank you. So we need to tell them up front-Alec Hanson:Have you seen the memes on the shows though?Milton Manolis:… yeah, it’s pretty funny.Alec Hanson:Where the one guy’s like, “I’m a butterfly collector.” And the other one’s like, “I fold paper airplanes and our budget’s 2.5 million dollars.” Right?Milton Manolis:Yes.Alec Hanson:It’s amazing. It’s not real people.Milton Manolis:So we have to prep them and control that perception, right? And that’s some of the things that we talk about. We go heavy in do scripting as well.Alec Hanson:I want to hear some scripts. I know some loan officers want to hear some scripts.Milton Manolis:Right.Alec Hanson:But I think what I’m hearing from you is the first step is you have to educate the realtor and the homeowner of what questions to ask.Milton Manolis:Correct.Alec Hanson:And the real estate and the mortgage guy.Milton Manolis:Right.Alec Hanson:What questions to ask.Milton Manolis:Correct.Alec Hanson:Like, “Are you going to do any improvements on your home?”Milton Manolis:Correct.Alec Hanson:During the 1003 process. I feel like some of our consultants out there in the mortgage industry are just so quick to fill out the 1003 as opposed to asking the real questions about what is important to that home buyer and they miss out on providing them all of the options that they should.Milton Manolis:Yeah, I mean doing exactly what you said usually converts them quicker, right? Everybody’s had those customers that have a difficult time finding something and that’s because they’re looking for the perfect house and three months later, ten pre-approvals later, they’re not finding or buying or getting into a contract, they’re frustrated and then they exit the game. They’ll say, “We’re out. We’re just too frustrated and we can’t find anything.”Alec Hanson:So I got to share this because you helped pioneer something with me here at Loan Depot that I thought was really cool, which was the open house kind of, what was it, design studio.Milton Manolis:Correct.Alec Hanson:Remember this?Milton Manolis:Yes.Alec Hanson:Okay, so this is rad if anyone out there is trying to get creative, we all know that when you’re out there looking at open houses and looking at your community, there’s some houses that need some love. Milton Manolis:Correct.Alec Hanson:And so you know when a home buyer walks in, the first thing they think is, “Ah, too much work,” or “It needs some love,” or “I don’t have the money.” Or whatever they think and they walk out. But they really want to be in that school district, they really want to be in that neighborhood, whatever the reason. The design studio that you helped me pioneer was this really cool concept where you would… Like in the kitchen, we put up a little popup and would have kitchen tiles, kind of like if you would walk into Home Depot, like a tile sampling-Milton Manolis:Correct.Alec Hanson:… paint sampling, appliance brochures and each room could have a different little kit, bathroom, kitchen, master, that would showcase kind of options. Almost like you’re walking through a new construction home-Milton Manolis:Exactly [crosstalk 00:15:23].Alec Hanson:… and the design studio. We’re putting these in open houses, actual open houses across the country and that starts the conversation. That someone walks in and goes, “What’s this doing here? Oh, I can have new cabinets.” As opposed to, “I don’t like the 70s stuff that’s here.”Milton Manolis:Yeah and that conversation springs from part of the conversation with these customers, “Pick your upgrades.” It’s not always about construction and renovation and rehab. It could be something as simple as upgrades. You want to upgrade your cabinets, your countertops, just like you said on new construction, so they can go in and pick those upgrades and then we’ll finance them.Alec Hanson:So let’s drop them some scripts.Milton Manolis:Okay. Alec Hanson:What should a loan officer or real estate professional be asking? What are the scripts to talk to customers with?Milton Manolis:So, initially at pre-approval, probably the most important script-Alec Hanson:At pre-approval.Milton Manolis:… at pre-approval.Alec Hanson:I’m trying to hit the point. At pre-approval.Milton Manolis:Right. When you’re delivering that pre-approval guys, you’re giving it to that customer, it’s just one sentence and it’s quite simple and I say it to every… It doesn’t matter if they’re a renovation loan now or not, obviously they’re not, you’re giving them the script, you’re just prepping them and you’re saying, “Mr. And Mrs. Jones, congratulations, here’s your pre-approval. If you find a house and it needs a little bit of work or you want to update something, no problem. Let me know. We can roll in the extra money and you could do those repairs or updates after closing.” That’s it. That’s all you say.Alec Hanson:That’s the whole script?Milton Manolis:That’s the whole script.Alec Hanson:Say it again.Milton Manolis:“Mr. and Mrs. Jones, congratulations, here’s your pre-approval. If you find a house and it needs a little bit of repairs or updating, let me know. I could roll in the extra money and you could do those repairs and updates after closing.” Alec Hanson:So, I love it. I love it because you talk about after closing. Which is like, “Hey, buy the house. Get the close.” Because some people worry about that and there’s some demystifying that needs to happen on these deals. You also say, “Roll in the cost.” You don’t mention renovation. Milton Manolis:Exactly.Alec Hanson:You just tell them the truth, which is, “We can do it in one loan.”Milton Manolis:Yeah, don’t overthink it. Right, “We’ll just, whatever you want to do, we could finance it in and you could do that work afterward.” And doing that over a span of years, what I noticed, finally, it took me a while to pick up on the responses, but what I noticed is there were really two responses that the customer would give. The first one would be, “Okay. Great.” Alec Hanson:“Yeah, I’ll keep you in mind.”Milton Manolis:Exactly. But it was the second response, which was anything other than okay. If they asked, “How does that work?” Or, “Wait, can you explain that to me again?” Or, “I don’t understand.” As soon as I got anything other than okay, I would deep dive on them right there and I would ask them, “Have you seen a house that you liked that needed some work?” And I would say two-thirds of the time, answer was yes. And then I would find out about that house, I would get off the phone, I would call that agent and I would say, “Hey, did you know that Mr. and Mrs. Jones liked that house, but they didn’t have the money for the updates? Or they were concerned about how dated it was?” And it really allows you to bring extra value to those agents.Alec Hanson:Oh I bet, because you’re putting together a deal for them.Milton Manolis:And potentially convert it faster. Now if that property is still available, you’re helping the agent complete it.Alec Hanson:Well, you got to imagine, right? If there’s a property that needs a little love, it’s probably not moving exceptionally quickly unless it’s in a key neighborhood, key market, but those things tend to sit.Milton Manolis:Correct, correct.Alec Hanson:Do you have another script for a loan officer to a customer?Milton Manolis:That was to the customer.Alec Hanson:Yeah, that was to the customer. Milton Manolis:Yeah, yeah. So we have one that goes to the agent as well, almost the same. Alec Hanson:Let’s hear it.Milton Manolis:And I would say, “Mr. and Mrs. Agent, here’s their pre-approval,” because we deliver it to them and we let them know and I let them know, I say, “Listen, when you’re showing them a house, if you get the sense they don’t like something, there’s something that’s wrong with it, they want to update or anything, let them know that we could just roll in those repairs. Just let them know.” And the visual there is that this customer walks into a house, sees a kitchen from the Brady Bunch, turns to the realtor and says, “I don’t like it.” I want that agent to be there and say, “You know what?”Alec Hanson:“What don’t you like?”Milton Manolis:Exactly. “And Milton said we can roll in, you can upgrade those cabinets and we’ll get you new hardwood floors.” And then once that customer hears that and remembers that I said the same thing, that’s how you’re able to convert your pre-approvals faster.Alec Hanson:Okay, so I’m in. I’m in the game now. I got the pitch, I got the angle, I got the script. But we still have to demystify the process. There’s still agents out there who would see a 203(k) or reno-deal come across and be like, “No thank you.” They’re afraid of it.Milton Manolis:Correct.Alec Hanson:They think it’s going to blow their deal up. Milton Manolis:Correct.Alec Hanson:So let’s get real. What does blow the deal up? What does take a long time? How do you demystify this and provide clarity into the process? What do you say to people?Milton Manolis:Well, listen. As far as the realtors reality, right?Alec Hanson:Yeah.Milton Manolis:Other than mentioning renovation on the contract, the only other thing they need to do is give access to the property for the contractor. The contractor, in certain markets in the country, that tends to be the biggest delay, right?Alec Hanson:Good, let’s break it down. Functionally, for someone that’s never done a renovation loan before, right? We already kind of hit the big point that you need to get a subject-to appraisal and that subject-to the future improvements. If I’m Johnny Homeowner or Home Buyer and I want to do a new kitchen, new bathroom, those are my improvements, what do I have to do to get my renovation loan lined up?Milton Manolis:So, everything normal, just like any other mortgage, any other loan but in addition-Alec Hanson:Documentation, same documentation requirements.Milton Manolis:… same everything, right. Same requirements. You’re going to get a contractors bid, just the contractor that you choose to use, we need a copy of that bid because when we order the appraisal, we’re going to give the appraiser that bid and we’re going to ask the appraiser to give us the future value based on those repairs.Alec Hanson:Based on the bid.Milton Manolis:Correct.Alec Hanson:So, let’s oversimplify this. How do they find a contractor?Milton Manolis:They can pick it, yeah, we don’t recommend contractors. They’re free to pick any of them. A lot of times, I’ll have customers go to Home Advisor or Angie’s List and pick a contractor, but they pick whoever they like as long as they have insurance and they’re licensed and they’re in good standing, we’re good.Alec Hanson:So pro tip for all you real estate professionals listening right now, pay attention because if you got a house that you know is going to need some love, you know it, then go find some contractors who are your friends, who are in your community who work with you, alongside you, get them ready to go because when that home buyer walks in and they go, “I need a new kitchen.” You go, “I know, I’m listing it. Definitely new kitchen.” Here’s Billy Bob the contractor, this is the cost for a new kitchen and basically that parts done at that point.Milton Manolis:Yeah, I mean we get the bid, we order the appraisal and we move along just like everything else, right? We want to make sure that the appraisal supports the repairs that we’re doing, but here again, on a 203(k), it doesn’t necessarily have to.Alec Hanson:Because you’ve got the 110 variance.Milton Manolis:Exactly.Alec Hanson:I just want to make this really simple. It sounds like the only thing I need as a home buyer in order to get a renovation loan, besides the normal documentation I’m going to provide, is a bid for the work I want to have done so that you can order an appraisal and get a subject-to value based on the bid.Milton Manolis:Correct.Alec Hanson:I mean, so I just need a bid.Milton Manolis:Correct. We don’t really-Alec Hanson:I know it sounds simple, but people are over complicating this thing.Milton Manolis:… big time. So if somebody’s buying a home for $450,000 and they’re doing $30,000 in work let’s just say, we’re not asking the appraiser to tell us if it’s worth $450, we want to know is it going to be worth $480.Alec Hanson:Correct.Milton Manolis:That’s all. Very simple math, yeah. That’s it. Alec Hanson:Okay, so now I’m in escrow, I got the bid, the appraisal comes back subject-to, what other things happen on the… Let’s get real tactical on the operations side, what other things have to happen for a renovation loan to close? Milton Manolis:Other than your normal loan process-Alec Hanson:Yeah, underwrite, yeah stuff that we do all day long.Milton Manolis:… that all stays the same, but we have our renovation operations team and what they do is they reach out to the contractor and to the homeowner, to the client and they basically execute the additional disclosures, get those e-signed. They ask the contractor for a copy of their insurance, their liability insurance.Alec Hanson:Yep, they track down all that stuff.Milton Manolis:They do it all, right. And they put it all together. They clear those conditions, they update the numbers once the appraisal comes back so we can make sure we have the final figures and that’s it. And I don’t mean to oversimplify it, but I just think that for so many years, so many people have tried to make this thing magic and it’s really not. It’s really simple. And I get that a lot. Once people are trained and they’ve closed a couple, they’re like, “This is really simple.” That’s what they tell us.Alec Hanson:So what happens after the close?Milton Manolis:So after the-Alec Hanson:I mean now the realtor and the seller are fine.Milton Manolis:… right.Alec Hanson:They’re done, but just to keep the story going, what happens to the home buyer now?Milton Manolis:They start work. We, Loan Depot controls the funds and so as they need money and as they do work, we disburse those funds. Alec Hanson:So this is a cool point. I’ve heard you sell what’s kind of like an asterisk to… If I’m doing a refinance and I’m going to do a cash out refinance for my house, but I know it’s all going to be for home building, like reno stuff, would you recommend a cash out refinance or a renovation loan?Milton Manolis:Well, I would recommend a renovation loan.Alec Hanson:Why?Milton Manolis:Well, I just think that it’s a smarter overall option and I think it would put them in a better situation, really.Alec Hanson:I’ve heard you explain, when the lender controls the disbursements of funds, you actually get some protection.Milton Manolis:Always, yeah.Alec Hanson:Because if the contractor and there’s always horror stories about you pay a contractor, they disappear, they go away, but when the bank’s controlling the disbursements, you actually get a lot of protection on that.Milton Manolis:Yes and when you’re doing a renovation refinance, the appraisal, because it’s based on the future value, it’s based on the work that you’re doing to the home, so you could find yourself in a position, depending on the work that you’re doing, where you can access maybe more money, right? To do more repairs because the appraisal comes in higher giving you equity or perhaps you’re able to remove mortgage insurance.Alec Hanson:Dude, that’s a great con, of course that’s why it makes more sense to look at renovation loans than cash refinances because you’re going to get a renovation loan based on future value.Milton Manolis:Correct.Alec Hanson:You do a cash out loan on existing value.Milton Manolis:Correct.Alec Hanson:So you might need that future value to access more equity to do what you want to do.Milton Manolis:And that’s worked wonderfully for our VA renovation loan, for our veterans. Alec Hanson:Yeah, I want to unpack that too. I definitely have time to talk about VA renovation, because I’m very passionate about that. I lost my train of thought here. Let’s go back to your presentation with the real estate agents. You’re educating them on the right questions to ask. You’re queuing them up, you’re demystifying the process, what else should they be aware of or afraid of? Or did we cover it all?Milton Manolis:Well listen, I mean there’s other scripts and tips that I give both the agent and the loan officer and it’s basically to let the customer know that they need to stop trying to find the perfect house, right?Alec Hanson:Oh that’s great. Milton Manolis:Yeah.Alec Hanson:That’s a great message. Hundred percent.Milton Manolis:Yeah, we tell them, “Find the perfect neighborhood. Find the perfect school district, subdivision, where you want to be and let us make it the perfect house.” Because back to those TV shows, which I love, I watch them, but these people think that home exists and that’s what they look for and they want to find it in that subdivision or in that neighborhood and when they can’t they stop and we got to let them know that, “You know what? That doesn’t exist. Find the perfect neighborhood. We’ll make it the perfect home.” Once they understand that, that’s again how you’re able to convert these transactions and bring it home.Alec Hanson:You know what else I remember that I think I want everyone to hear as another pro tip, when you are thoughtful and you ask the right questions and you find out that… You made a really good comment earlier, that sometimes with a lack of inventory, people go out and they get discouraged. They can’t find what they want. They end up coming back home and if you were smart as the loan professional, if you talk to them about their needs and their wants and you told them about renovation financing and how it works, they might go back home, look at their existing home and go right into a renovation refinance. Milton Manolis:Yeah, there you go.Alec Hanson:I mean, [crosstalk 00:27:07] I’m speaking from experience-Milton Manolis:We all are.Alec Hanson:… right? I’m looking at maybe buying a different home and I’m looking around and I’m discouraged that everything is either super priced up and I’m not willing to kind of go there yet or there’s not enough inventory and then I come back and look at my house. I’m like, “Well, maybe I should just do work here.” I mean it’s great. No, so you’re getting to get business everywhere. And that’s why I joke too about the renovation design studio concept in open houses because everyone has lookie-loos from the neighborhood that comes in because the house is open and they want to see what’s going on-Milton Manolis:Correct.Alec Hanson:… and then if they see the design studio, they go home and they go, “Honey, we should get a new kitchen. I just saw this design studio that Milton had up and I want to do it here.”Milton Manolis:Correct, yeah. Alec Hanson:Aw man, the opportunities just seem like it’s endless. Milton Manolis:Yeah and to that point, one of the other things we’ve communicated to loan officers and agents, realtors is that after the construction’s done or after the rehab or renovation’s done, a lot of customers they want to have an open house. People love showing off their home so they invite their family and their friends and they have an open house and you need to be there because the first thing your customer’s going to do is grab their family friends, walk them into the kitchen- Alec Hanson:They’re like, “This is the guy.”Milton Manolis:… and look at this kitchen. Exactly. And then point and say, “This is the guy who did it for me.” It’s a great way, not only to show respect to your customer, but also to-Alec Hanson:Killer.Milton Manolis:… pick up more business. Alec Hanson:I’ve talked to [inaudible 00:28:21] about house warmings and it absolutely, whether it’s renovation, refinance or obviously a renovation purchase, to celebrate that new house with the homeowners and be there is gold. Okay, so let’s talk about, there’s different types of renovation loans. You have conventional renovation loans. You’ve got 203(k)s and you’ve got VA. We talked a little bit about 203(k), the variance that kind of sets it apart, but what are the characteristics of a conventional renovation loan for somebody who has never… I mean if you’re a loan officer who is brand new, right? I’m just learning what renovation is. Let’s start there.Milton Manolis:Conventional loan guys is basically, it’s a Fannie Mae home style is what it’s called and it’s a straight conventional product where we allow you to finance the purchase and the renovation. On a 30 year fixed loan, everything is exactly the same. It’s a straight conventional loan, we’re just wrapping in that additional renovation-Alec Hanson:And we’re lending off the subject-to value?Milton Manolis:… correct.Alec Hanson:So whatever the subject-to value is, then you look at the down payment requirements, the guidelines, they’re all the same. Milton Manolis:Exactly right.Alec Hanson:Rock & roll. Milton Manolis:Exactly. Again, if the purchase price is $450 and they want to do $50,000 in work, your acquisition is 500 so you’re down payment, your loan amount-Alec Hanson:Your 10 percent or 20 percent down has to be off the 500?Milton Manolis:… correct. Off the total. The combination of the two, as little as five percent down.Alec Hanson:That’s right, that’s right.Milton Manolis:Yeah and-Alec Hanson:By the way, investment. Milton Manolis:… investor on a single family.Alec Hanson:Yeah, let’s do it, let’s do it. So investors because there are people that are investors.Milton Manolis:There is. Alec Hanson:And when they buy houses, they might likely want to fix them up a little bit before they put a renter in there.Milton Manolis:Correct.Alec Hanson:So how does the investment reno work?Milton Manolis:So the investor renovation is 15 percent down, is the minimum. So it’s an 85 loan to value of the total, right? Purchase price, plus total rehab, 30 year fixed, there’s no prepay-Alec Hanson:That’s awesome.Milton Manolis:… or restrictions. They could do whatever they want. I have investors that are customers and I’ve explained to them, I say, “Guys, you got to stop looking for those homes that you’re going to go buy, you’re going to put $20 grand into and flip it. Those days are over. You have to really find that ugly house, right? That needs an addition, that needs some major work, that’s where the money is right now.” Because those are the homes that your home buyers that are going to occupy, they’re just driving right past those. They don’t want to have anything to do with those.Alec Hanson:No and I’ve heard 50 percent down minimum.Milton Manolis:Correct.Alec Hanson:You could build in the upgrade cost-Milton Manolis:Correct.Alec Hanson:… and you’re rocking & rolling.Milton Manolis:Correct and the only other option these investors have is hard money, which isn’t a viable option.Alec Hanson:Yeah. Okay, so conventional is awesome. FHA, I mean VA.Milton Manolis:VA.Alec Hanson:VA.Milton Manolis:It’s our pride and joy Alec. Alec Hanson:So give everybody the background on this product. How did it come into existence to the best of your knowledge?Milton Manolis:So, back I would say five years ago, Loan Depot was the first company to really roll this out. I mean we believe we have a moral obligation to our veterans and [crosstalk 00:31:07]-Alec Hanson:Go ahead.Milton Manolis:… yeah, they were in a tough spot. They were finding homes that they wanted to buy, but the homes needed work or there’s work that they needed to do to the home and they couldn’t write an as-is offer because everyone needs to remember, all renovation loans are as-is offers. Doesn’t matter what condition the property’s in. So our veterans were getting priced out, right? They couldn’t make a move. And so what we did is created a VA renovation loan that at the time was great. I mean we hit the road with it, promoted it, did wonderful.Alec Hanson:It was kind of mirrored a streamline, right?Milton Manolis:It was. It was a mirror-Alec Hanson:$35,000 cap.Milton Manolis:… correct, nothing structural and 90 days to complete the work, right? And it was great, but it had those limitations and then last year, we really revamped it. Opened it up, set it up to mirror the 203(k) so now, you’re limitless. I mean you could tear a house down and build a brand new house if you want and you can go exceed $35,000. You can go to your limits and as you know with the recent change on the VA loan limits.Alec Hanson:I was going to say, no loan limits. I mean you’re talking a massive renovation loan.Milton Manolis:Right. Which is wonderful and we’ve done quite a bit that make the home accessible for disabled veterans.Alec Hanson:Yeah, so this has always been really heavy on my heart and I’ll share a story for everybody paying attention. I took this out of Milton’s book, during every new hire orientation, I ask everyone in the room, we had 100-something loan officers last month, a few weeks ago and I’ve done this for like seven years, I asked everyone in the room who has served to raise their hand. And you’re going to always get a smattering of people who have served, it’s amazing, right? You get to cheer them on and thank them for their service and then I ask they keep their hands up and then the rest of the room, “If you had a parent or a child who has served? So a direct relationship to someone who has served, raise your hand.” Guys, every time, it’s like 70 to 80 percent of the hands in the room go up. And this is across the country. These are people from all over the country, every demographic and we are all touched by that. They have impacted our lives. No matter where we live, what we think, we’re related, we’re connected to vets and Milton when the VA renovation loan first came out, even when it was $35,000 dollars, the passion, the excitement I have around educating veterans who don’t know it exists and now that it’s unlimited.Milton Manolis:Correct.Alec Hanson:God forbid that you have a disabled veteran, but the greatest loan in America is a loan for a disabled vet at 100 percent financing with all the renovation costs built in to make their home handicap accessible.Milton Manolis:Exactly.Alec Hanson:It’s the greatest loan in America. And when I ask everyone in the room, “How many of you guys have veteran non-profits in your community serving veterans?” Are they educating… Now there are wonderful non-profits who help disabled veterans, so this isn’t like the miracle cure all, oh my God there’s no resources for disabled vets, of course there’s resources for disabled vets, but this is also a resource for a disabled vet and they need to know it exists because if they don’t, if they’re not able to access other resources to help them and they don’t even know this is here, it makes me pissed off. I get mad. And so I encourage loan officers, if you’re listening to this, this product, I mean you have a moral obligation to go into your community, to into your veteran non-profits and educate them that they have a resource. They have a tool. It doesn’t mean they have to use it and mortgages, it’s not for everybody guys, we know this. There’s an underwrite, there’s a whole process, but man that’s an incredible deal.Milton Manolis:It truly is and I tell people, “We’ve all been in those situations where you’ve been at a closing and you have emotional customers, they’re buying their first home and they’re there and just emotions, happiness.” Right? And you feel pride and you’re happy that you’re able to do this for them and they’re emotional. You do a VA renovation loan for a disabled veteran, you’ll be the one that’s overcome with emotions, right?Alec Hanson:Oh, no kidding.Milton Manolis:You’ll be standing in the corner looking and it’s a special thing man, it really is and I’m really proud of it. I love it.Alec Hanson:Yeah, I mean I just want to encourage loan officers out there that this product, you should be screaming it from the mountain tops. You should be educating everybody you can on this deal because it’s a gateway product to everything else. You’ll get other loans. I mean, how many times do you see loan officers run seminars on reno and they get tons of conventional loans. Milton Manolis:Exactly.Alec Hanson:Education is education. It doesn’t mean you’re only going to do 203(k) loans.Milton Manolis:That’s correct and guys, that’s how I kind of made it work.Alec Hanson:Made your business.Milton Manolis:I use renovation loans and I want you to use renovation loans to get non-renovation business. The renovation loans will come. It’s not about the loan, it’s about the value proposition the loan gives and what it brings to the relationship. And that’s how you have to approach it.Alec Hanson:The other thing that I forgot that’s kind of a byproduct of renovation, is you’re actually increasing the value of the neighborhoods. Milton Manolis:You are.Alec Hanson:I mean this is important. You’re actually bringing the value up for all the neighbors there. That’s epic and if you’re a real estate professional or a mortgage professional and you’re revitalizing a community, man that’s badass. Milton Manolis:It is.Alec Hanson:That’s really cool.Milton Manolis:That is pretty cool, yeah.Alec Hanson:I mean you could have pride driving through the neighborhoods being like, “I’m bringing the value up of this community.”Milton Manolis:Right. When that neighbor orders an appraisal and that appraiser is going to mention, “This comp was rehabbed and so-on and so-forth.” Yeah, absolutely.Alec Hanson:Okay, so let’s go back for some tips and tricks. Let’s get real tactical for some loan officers here. You gave some good scripts. What else do you cover in your seminar? In your presentation? What have we skipped over?Milton Manolis:Well, you could use renovation loans for future listings, right?Alec Hanson:Go, break that down. What do you mean?Milton Manolis:So basically, we tell our realtors, our agents that if you’re on a listing appointment and you see a house and it needs some work and you think the numbers will work, right? Where maybe they could do some work and list it at a higher price and net out a little bit of money, you can absolutely do a renovation loan for a future sale. A renovation refinance.Alec Hanson:Oh, that’s really smart. Because there’s a lot of agents out there who are looking how to improve their listing presentation conversions and so if that’s you or if you’re a loan officer and want to educate some realty partners, when they go on our listing appointment, they should encourage that seller, future seller to consider a renovation refinance and make their home beautiful and let’s say they put 50 grand into it, well they might net 80.Milton Manolis:Correct. Alec Hanson:And as a real estate professional, you know that. You know the value of like, “Hey, if we do a new kitchen and all this stuff, I can sell this for more.” And so man, that’s a great education tool.Milton Manolis:And then you’re locking down a seller that you’re doing a refinance for and you’re going to do their purchase down the road.Alec Hanson:Heck yeah. I mean you’re going to get both loans. For sure.Milton Manolis:Exactly.Alec Hanson:But this is really cool because the seller, the complaint is, “I’m selling my house, I don’t want to put more money into it.” Well, if you finance it, it’s just about carrying costs at that point. That’s a different [mathic 00:38:19] education process. It’s not about, “You need 50 grand to do the rehab.” It’s, “Hey the carrying costs of this for after completion is probably we’re going to sell it in three months, so your interest costs for three months is this, let’s go.” Milton Manolis:Correct.Alec Hanson:I mean, it’s much less.Milton Manolis:And I’ll add to that in certain parts of the country Alec, there’s a lot of un-permitted additions. Alec Hanson:Oh, okay. We got to break that down.Milton Manolis:Yeah, so there’s people who put un-permitted additions onto their home-Alec Hanson:Of course, of courseMilton Manolis:… and now they want to sell and you can’t get value for that.Alec Hanson:No. Milton Manolis:So that’s where-Alec Hanson:No you cannot.Milton Manolis:… yes, you’re right. But we can finance that for either the existing owner or the one buying it and finance the cost of making that addition legal.Alec Hanson:Oh, say that again. Let’s pretend the seller doesn’t want to do anything.Milton Manolis:Okay.Alec Hanson:Because they’re selling.Milton Manolis:Right.Alec Hanson:“Whatever, it’s my un-permitted ADU,” or whatever it is. But the buyer, through a renovation purchase can get that all done before they close.Milton Manolis:Well, we would finance the cost of making the addition legal into the loan.Alec Hanson:Yep, into the loan.Milton Manolis:So then they could do it afterward.Alec Hanson:That’s killer.Milton Manolis:And then the appraisal would be based on that addition being legal.Alec Hanson:That’s killer. That’s a great pro tip and I hope people pay attention to that one. That’s gold. What else do you got?Milton Manolis:Guys, I would tell you that you want to understand that customers buy location. That’s how they shop. Where they want to be, the neighborhood, the school districts, like we said and so we need to put them in a position to understand that if they do not find something in their price range, that they may be able to find something for less that needs work, right? So I get it, they’re looking for a home that doesn’t need any improvements, right? Alec Hanson:Yep.Milton Manolis:Their dream house and they’re looking at $500,000 and they can’t find it. Well, maybe you could find that $400,000 dollar house that has some mold damage or you know what I mean? Just needs that $100,000 dollars in work and they can make it perfect.Alec Hanson:That’s good. Milton Manolis:So just remember they buy location and we got to work within that sphere.Alec Hanson:So let’s recap some of the big takeaways here.Milton Manolis:Okay.Alec Hanson:Let’s give it to them. Let’s give them the script again. The script again for a home buyer.Milton Manolis:Is, so basically-Alec Hanson:At time of pre-qual.Milton Manolis:… yes. Yeah, the script to the home buyer, “Mr. and Mrs. Jones, congratulations, here’s your pre-approval. If you find a house and it needs a little work, you want to update or repair something, let me know. I could roll in the extra money and you could do that work after closing.”Alec Hanson:Killer. Okay, we landed that. Let’s hit the variance again. Because that is a deal saver.Milton Manolis:Correct.Alec Hanson:So let’s break down how that works, let everyone really understand it.Milton Manolis:Basically guys, this only applies to a HUD FHA 203(k), you can go to 110 percent of the subject-to value.Alec Hanson:God that’s killer.Milton Manolis:So, if it started out as a 203(k) or if it started out as a 203(b) and-Alec Hanson:Don’t say 203(b) bro. No one knows what that means.Milton Manolis:… okay.Alec Hanson:You just mean an FHA loan.Milton Manolis:Yeah, an FHA loan. I dated myself. Sorry brother. Alec Hanson:203(b). Everyone’s like, “What?” FHA loan guys.Milton Manolis:FHA loan and the appraiser comes back calling out repairs, right? You can finance those repairs and go up to 110 percent.Alec Hanson:So that’s killer guys. That’s nugget number two. Nugget number three, conventional.Milton Manolis:Correct.Alec Hanson:But I like the investment kick.Milton Manolis:Correct, yeah. Alec Hanson:15 percent down-Milton Manolis:Of the total.Alec Hanson:… of the total investment reno. That’s clutch.Milton Manolis:Right.Alec Hanson:And then, what’s the next-Milton Manolis:I would say, the script to the agent is letting them know that, “Mr. and Mrs. Agent, here’s the pre-approval for Mr. and Mrs. Jones. If you’re showing them a house and it needs some work and you get the sense that they don’t like it or there’s something that turns them off, let them know we could finance that in.” No obviously at that point, with that agent, you’re going to make a slight variance for agents that you have a relationship with or it’s wonderful for your first-time agent, right? The agent you’ve never spoken to, okay? The client came to you, they already had an agent, now I’m picking up the phone, calling them and they’re going to ask questions as soon as you give them that script. And that’s how I explain it them and they’re going to say, “Well, do you mean a renovation loan?” I’ll be, “Exactly, but it’s an as-is offer. We can convert it quickly. We’ll finance those repairs. You’ll be able to convert this customer.” I mean there is just so much you can haggle with that.Alec Hanson:… yeah, that’s nugget number three.Milton Manolis:Correct.Alec Hanson:Nugget number four that I pulled out of here is the fact that if you do educate your buyer on rolling in the cost and what renovation can do and they don’t find the home, you’re likely going to pick up a rental re-fi.Milton Manolis:Correct.Alec Hanson:So there’s the next one. Then we’ve got the VA renovation loan. The power of that with our veterans in our communities, the power of leveraging that with our VA non-profits is just a gold mine and it’s under leveraged and it’s under served and it’s just full of opportunity and that’s another gold nugget for everybody and then the design studio.Milton Manolis:Correct.Alec Hanson:The design studio is putting these up in these houses in your communities guys where… We all have dated communities. We do. Across the country that just are old and putting design studios up on those houses and door knocking and letting people know there’s going to be a design studio in, everyone’s confused and bringing people in, man, you’re going to farm that. Milton Manolis:Correct.Alec Hanson:You’re going to get a ton of business from that.Milton Manolis:And I’d like to add one more nugget.Alec Hanson:Please.Milton Manolis:We’re starting to see a trend moving forward, it’s called age accessible housing where you have people who are retiring, but not moving out of their home, but they want that addition, they want that master bedroom and bathroom on the first floor [crosstalk 00:44:12]. That’s going to be a big trend three to five years from now guys. Be mindful of it and be ready for it because there’s going to be a lot of seniors that are going to need that help, right? They can’t navigate up and down those stairs, they want a ranch style, but they don’t want to move. Alec Hanson:Yeah they like their… Yeah.Milton Manolis:Exactly. Alec Hanson:Man, that’s just like, how do we continue to educate our past customers on that stuff because those are our past customers.Milton Manolis:Correct.Alec Hanson:Sitting in those houses.Milton Manolis:Correct, yes.Alec Hanson:That now want to do something different and you need to educate them. Man. All right, so Milton thank you by the way, this has been just gold nugget after gold nugget.Milton Manolis:Thank you, thank you.Alec Hanson:I’m imagining people just pulling these things out and radically enhancing their business. So we’re winding down. What advice do you have for an originator in 2020, whether they’re seasoned, they came through the crisis, they’re ready to continue to evolve into the next roaring 20s or they’re new, they’re newer to the industry and new to doing loans. What advice would you give them around renovation loans?Milton Manolis:Guys, like we said in the beginning, how we opened, you want to use it as a unique selling proposition. Don’t overthink the actual renovation or the word-Alec Hanson:Smart.Milton Manolis:… renovation. Don’t use words that could overwhelm a customer, construction and renovation and rehab, I mean you got to keep it simple because it’s really not that hard and just open up that dialog with the customer, talk to them and if you see they’re having trouble finding a home or if you learn that the house they currently live in, their family’s grown and they need to build out, there’s really a lot of opportunity. Embrace the option and leverage it as a tool and like I said, use it get non-renovation business. Discuss it [crosstalk 00:45:46].Alec Hanson:Yeah, it’s a gateway product. [crosstalk 00:45:48]. You’re going to get non-renovation business.Milton Manolis:Exactly.Alec Hanson:And the last thing I do guys, I want to encourage you, first of all, hook up to Milton online, he’s always sharing great stuff and really pushing the reno world forward, so thanks for all you contribute there. And I just want to land this whole episode with this guys, if you’re a loan officer in your local community, you have a tremendous opportunity to be an educator on this wonderful product. To the real estate professionals, to the community there and to your veterans there. You have an unbelievable opportunity to be an incredible educator and in my opinion, transform your own business in the process. I mean, it’s clear in your history, as an originator, it transformed your business and there’s nothing stopping you guys. All the resources are at your fingertips, so go and take on the world and educate our vets on this incredible, incredible product. Anything else to add?Milton Manolis:That’s it.Alec Hanson:We nailed it.Milton Manolis:We did.Alec Hanson:All right.Milton Manolis:Thank you brother.Alec Hanson:Thank you guys for tuning in. Milton Manolis:Thank you.Alec Hanson:Hey, by the way. Reminder, please. If you stayed through the whole thing, man I love you. You’re like the true fans because everyone else is just going to listen to the first 30 seconds and peace out. That’s okay. It’s okay, I love them too, but thank you for staying tuned the whole time. Please subscribe and share and drop a nugget in the comment, let me hear what stood out for you guys. It helps us get better. Thanks, have a wonderful day. We’re out.Milton Manolis:Thank you.

Like-ability • Capability • Opportunity

Before you rush in for the “close” make sure you are following this process. First, have you established if your target audience “Likes” you. Second, have you built up “visible” capability with said audience. If you have, NOW you will have an opportunity to serve.

In this Edition of LiveTime with Alec…

  • What these three key points will help you with.
  • What you need to do with each of these before your next “close”
  • Prioritize these three things. 
  • Its complicatedly simple.

Episode Transcribe

What’s up, everybody.

 Happy Thursday in a world that has gone upside down.

 I can’t believe it. I can. I can believe it, but I can’t believe it because we’re not supposed to be in this kind of crazy interest rate volatility and this insane market right now. We’re not. We’re supposed to have higher rates, more stability, companies going out of business. And we’re going to have companies going out of business in a low rate environment, or I should say, in unstable rate environment.Thank you guys for hanging in with me today. I’ve got a really cool topic that I want, before we dive into likeability, capability, opportunity, we really need to talk about perspective, again, for 10 seconds.We are on a wild ride. This world is changing at such an aggressive pace. Sometimes it can be very overwhelming and hard to keep up with, but that is where the opportunity lies. Not in the kind of that I’m talking about right here, but in the opportunity to stay focused on what matters. And let’s land that really quick. What matters? What’s important in our businesses right now that matter? Well, I’m going to tell you, straight up, it’s consistency in the efforts that gain you more influence and more connection to human beings. It’s the efforts and actions that you need to do on a regular basis that keep you connected with other human beings and growing influence and relationship. Influence. I can’t speak well today.Hi Lisa. Thanks for joining over on LinkedIn. We’re on LinkedIn, YouTube, Facebook, having a blast. And we’re going to talk about something. If the priority is keeping consistent on the activities and actions that drive the future success of your business, then you can not let the crazy market swings and the Facebook warriors and the people who are quoting rates that aren’t even licensed, you can’t let any of that bother you. You can’t get stuck in the space that doesn’t drive your business forward.I see a lot of people getting stuck right now. They’re abandoning the practices that they’ve done before. They’re abandoning their consistency. They’re not talking… What’s up, Jeanie. Thank you. You’re awesome. They’re abandoning the actions that led them to success in the past. Hi Pam. Thanks on Facebook. You’re setting yourself up for failure. You’re going to be riding the roller coaster of originations, which is, I got a lot and then I got nothing. And then I try to get a lot again, and then I get nothing again. Hey Richard. You got to stay focused and consistent on what matters. So let’s talk about what matters.I see a lot of people, especially in this rate environment, diving in and smashing people in the face with low rate posts. Sure. There is something to recognizing the environment and sharing it with people so that they can see what’s going on with the industry. Got it, love it. But when you’re doing that and you’re forgetting the importance of this magic equation right here, boop. This one right here. This equation or process that I’m going to break down has been the same since I got into the business and I was going door-to-door, meeting realtors, and getting business that way. Which, by the way, if you’re still doing that, excellent. Realtors are the best partners in the world to have. Complement that by following this exact same thing with your digital efforts. All right, so let’s break it down.Likability. All right? Likability. Does your audience, the people you’re trying to influence, the realtors that you’re connected with digitally, the customers, the past customers that you’re hopefully connected to digitally, the community influencers, all the people that you’re trying to influence, the business owners, et cetera. Have you worked hard to establish any level of likability with that person? Have you?Guys, likeability matters. We do business and engage with companies and people that we like, that we are attracted to, that we think are fun, or fun loving, or that we are… Likeability matters. I used to joke hysterically that in real estate, meaning as a mortgage professional working with realtors, you don’t even have to be good at doing mortgages if everyone likes you. They give you more grace if you make mistakes and they’re more likely to refer business to you if they like you. I used to joke, we don’t get business based on our competency. We get business based on how much people like us.Now, that kind of mentality was in 2003. Fast forward, in 2020, man, likability still matters tremendously. If you don’t like someone, you’re not going to do business with them. Period. And so before you start hitting people in the face with like, “I have low rates, call me now. Just send me your mortgage statement.” Do those people even like you? Have you worked really hard to establish any type of likeability? Because if you haven’t, they’re going to see your post about, just send me a mortgage statement and I’ll refinance you, and they’re going to call the person they do like in mortgage and they’re going to do it for them. So I appreciate you marketing for your competitors, but that’s what’s happening.I mean, I put these words on my little ticker. Put these words on your monitors. Put them as your backdrop so that when you’re making content or when you’re deciding what to put out, did you cover base one first? This is first base. Are you likable? Got it? If you do that, then you have the chance to showcase if you’re credible. Humans aren’t dumb. People that are going to come to you for a loan with their purchaser ReFi, they’re not ignorant idiots. They have the same access to the Google that you do. So they’re going to check out. “I like this guy. I like this gal. They’re fun. They’re engaging. They’re around. But, are they credible? Do they check off the credibility box?” Because if they don’t, if you don’t, and this goes back into all the brand stuff we’ve been talking about, all the third party validations, the Yelp reviews, the five star ratings. If you don’t have that stuff, then they’re going to go, “I like you. You’re not super credible. I don’t think [inaudible 00:06:50].” And it’s not going to work.So again, if you’re just spamming, “Send me your mortgage statement.” Melissa’s saying, “Likeability’s…” Is that right, Melissa? Likeability is your saving grace? And by the way, it’s not a saving grace. It’s the first step in the process, is likeability. So it’s not a saving grace. It’s a skill. And leverage that thing. But, as you leverage it, realize that the next step, capability, is going to come right in.So, what are you doing to establish capability? I’ve done a million videos, it feels like, on branding and establishing yourself as an expert and how to do that. Use the Google. I’m not going into it in this session of just hanging with you guys, but it’s pretty obvious, right? Hey, I like this person. I see them a lot. I need a haircut, man. Look how terrible that is. Not just the balding part, which is amazing. And it’s a gift from my family, but I look like a ragamuffin. I know, ragamuffin. No one says ragamuffin anymore, but I’m bringing it back.If you don’t establish your credibility and your capability, you’re not going to get opportunity. You’re not going to get opportunity. If you post, “Send me your mortgage statement”, but you haven’t created any type of effort to make yourself likable and to expose who you really are in your business and cut away the billboard bull crap… Don’t cuss on live. Lesson number one of livestreaming is don’t cuss, and I almost broke rule number one. I’m not Gary V, all right? It’s not going to happen. I’m not going to build my business off cussing. But if you have not established likeability and capability, you will not earn opportunity. All right?And then, of course, since we’re talking about it, we might as well just go there, opportunity. And what I mean by opportunity is, leads, business. Oh, Lisa, stop. Can you stop it? It’s the chance to actually engage a customer. They’ll send you their mortgage statement and be like, “What can I do?” If you’ve established the first two, likeability, capability, they’re scrolling across the screen right there. That’s what does it right there, guys. So if this is a sticky note on your computer monitor or wherever you need to focus on it, make sure you’re hitting all of these buckets. Make sure you’re showing up as a real, authentic human being who can be likable.And by the way, this also means don’t be fake. I come across with a lot of energy. When I talk, when I present, when I do whatever I do, I come across like, “I’m here. Let’s go.” That’s me. That’s my style. I like that style. I’m comfortable in this style. Do not copy whoever you’re seeing out there. Show up as you would want to show up with your own self, with things that matter to you. Some of the greatest comics in the world are deadpan. They’re not energetic storytellers dancing around the stage. They’re delivering hysterical comedy with just no expression and they’re just right here. And then that’s funny. It just shows there’s a spectrum for likability guys, and play your card. Play your card. And then don’t forget to play in the capability space. How are you showcasing that you’re capable?That will lead you to opportunity. And an opportunity, guys, you have to live in a space of abundance. There is so much going on around us right now that if you’re living in scarcity, then you’re going to see opportunities as a threat. There’s someone always trying to take it from you and you got to protect it or you got to bad mouth somebody else or whatever. That’s never the game. People who want to live in scarcity and see opportunity as a threat, and somehow they’re getting it but it could be taken from them, those people never win in the long run. And you see them all the time. So, pause for a quick hot second here. Take a sip. Got to have those electrolytes, because, you know, coronavirus.Does this make sense? It’s a simple equation. But to me it makes a ton of sense because it really breaks down the sales process, if you will. It really breaks down the relationship building process, or the priority process. Do not go in for the kill, the sale, the close, if you haven’t spent the time earning the right to have that kind of a conversation with somebody. And the only way I know you’re going to earn that kind of right, is if we focus on these three things, guys. All right?What are you doing to create likability? What are you doing to showcase your capabilities? And then from there, you get the opportunities of actually influencing and working with customers and providing them with an awesome opportunity ahead of them. You get me? It’s not complex, but it’s hard to do. And it’s only hard to do because we as humans are terrible at execution, aren’t we? We’re terrible at execution. Because here’s the deal, if you want to become likable, or liked, let’s just go through that. If you want to be liked by your audience, by your past customers online, by the realtors you’re influencing, by the community partners and whatever, on your social sphere, how often do you need to hang out with them?I love that dating always kind of has this amazing parallel connection to sales. Okay? No one on date one bends the knee and is like, “Will you marry me?” No one does that. Well, some people. Don’t do that. I’ve watched Frozen enough times to know that’s a mistake. That’s a bad guy. Don’t do that. No one does that. You don’t go in for the marriage proposal on date one. But how many dates does it take to understand if you like somebody? Everyone’s got a different answer to that, don’t they? It’s probably not one.So how many times do you need to show up in people’s social feeds? How many times do you need to show up at the soccer field where your kids play and love on your local community and serve them? How many times do you need to show up and be in relationship with people to establish likability? How much work do you have to put in to establishing credibility? Is it one Yelp review? Is that it? You did it? That’s success? I got my one. No. No, of course not. So how hard do you have to work to hit likeability and capability before you can make the post that says… Oh my God, are you guys getting attacked by robo texts? I’m getting texted by people that are like, “You want $5,000 for free?” Talking about being over marketed to, right? Your customers are experiencing the same thing. So have you established likeability, have you built up your capability so that you have the opportunity to serve your customers?That’s the game. That’s it right there. Bang, bang, bang. Done. But if you don’t follow it, if you don’t follow it, and you go right to the close… I call it opportunity now because I don’t want to call it close time or sales time or sales, because that’s not what we’re here to do, right? We’re here to talk to a customer about their opportunities that could be in front of them. Whether it’s a cash out refinance, written term, or a renovation loan, or re-purchase they’re considering, all of that stuff is our job. So if you don’t hit one and two, you will not get an at bat at number three. All right? Serious. Put it on your monitor. Old school it. Sticky-note it. Focus on it. Because if you got to choose to show up in the online community, then you’re going to have to figure out how to hit one, two before you can hit three. Otherwise you’re just noise and you’re not going to get a response.All right. Appreciate you guys hanging out with me today. Please do me a favor if you’re still hanging right now at the very end, will you throw a comment or a like or a share on this thing and help me get my reach out? I need your help. Can’t do it alone. Got to do it with you guys. That’s the game. Community. Appreciate everybody jumping in. I hope you have a wonderful rest of your week. Stay safe, stay dry, if you’re in my world out in Southern Cal, it’s raining like crazy. And wash your hands. See you guys.