Making Agents Rich Episode 136 [0:00:00] This program is brought to you by the podcastfactory.com. For show notes, links, and other resources mentioned in today's show, go to makingagentsrich.com/136. If your business deals with having to get one-to-one, face-to-face with someone and you're not approachable, you're sunk. This is the only show on the Internet dedicated to making agents rich. If you are looking for bright, shiny objects or suffering from information overload, please stop listening now and get a therapist. [0:01:06] But if you are seeking proven systems that will give you true freedom, you're in the right place. You are listening to the Making Agents Rich Show. Do you want to know how to turn your database into an ATM almost instantly? Then check out the Referral Getter. Just go to www.referralgetter.com for more info now. Darin: You are listening to the Making Agents Rich Show, episode 136. We are your rocket ship captains, Darin Persinger and Jonathan Rivera. Jonathan: Welcome, MARSians, to another show. Are we going to still continue the sci, science -- no, it was rocket science talk last time. Darin: Rocket science, not science fiction. We were talking about real stuff. We're keeping it real. Jonathan: That's what I dig about you, Darin. You keep it real. [0:02:02] Darin: Katherine was actually listening to a show -- Jonathan: No way. Darin: -- where I was doing the introduction when I did the Jonathan Riviera and she thought that was the funniest thing. She's like, "That name sounds so cool." Jonathan: I don't even remember that one. Darin: You don't remember? I called you Jonathan Riviera. Jonathan: No. We've done too many shows. I guess I'm losing track of -- they are all starting to blend together. Darin: We have done too many shows. Jonathan: Why will she -- Darin: Could you imagine if we were actual radio DJ guys that do a show Monday through Friday, like daily show -- Jonathan: No thanks. Darin: -- people? Man. Jonathan: Because you knew respect for them, right? Darin: You know, you're the person I probably talk to the most. Jonathan: Really? That's sad. Darin: Yeah. Jonathan: That's sad for Kat. Darin: When I really think about it. I might need to start a podcast with her. [0:03:00] Jonathan: Yeah, so that you guys have more time to talk. Darin: Just so I'd talk to her more. Yeah. Jonathan: The Couple's Podcast, I like that. I think that could be a big hit. Darin: Yeah. That's what you should be doing at the Podcast Factory. Have troubles in your relationship? Not communicating enough? Start a podcast. Jonathan: Podcast therapy. Darin: Because then you're forced to be -- yeah. It is. You're forced to be in the same area talking to each other at the same time. That might be good. Jonathan: I'm going to put that in. I'm going to just put that in the back of my mind for products this year. Darin: Okay. Yeah, think about that. Jonathan: So what do we have coming up for the MARSians today, Darin? Darin: All right. I got Numbers Never Lie that I think gives us some direction on maybe where we should be going with our business and that ties in today's topic of how you become the approachable resource -- Jonathan: All right, so -- Darin: -- for potential first time home buyers. Jonathan: Let's do it, man. Let's jump into the Numbers Never Lie. Darin: Number Never Lie, 60%. [0:04:01] Jonathan: Sixty percent. I don't know. What is this 60% number you're bringing today? Darin: Okay. According to a survey conducted by loanDepot, a mortgage company, 60% of potential home buyers said they want to purchase a home but they aren't pursuing it because they believe their mortgage application would be rejected. Jonathan: Wow. Well, who are these 60%? Darin: Now, let me go a little bit further into that. Three-quarters of them even admit that they haven't checked with a current lender on requirements. So this is just completely made up fear in their head. They're not even looking at possibilities. Jonathan: Yeah. I wonder who they spoke to. Darin: They have disqualified themselves before they have even checked into any realities. Jonathan: So that means only 40% of people that want to buy a home are actually in the market. Is that what I'm seeing here? Darin: Basically, yeah. Yeah, or even taking a step. [0:05:01] Jonathan: Huh. Wow. That's so much opportunity left out there. Darin: I think that's a lot of opportunity. That's why I wanted to talk about it on today's show. Jonathan: Cool. So then let's jump into the main topic which ties in to this Numbers Never Lie. Darin: All right, and so I would call this topic: "What Are You Doing to Become the Approachable Resource for Potential First Time Home Buyers?" Speaking from experience, Jonathan, I'm still seeing -- the question that we still get from buyers is: Don't I have to put 20% down? I think that's why so many of them are not pursuing. The myth of 20% down is something that does not go away. Jonathan: Interesting. So they are worried about the down payment. They know they don't have the down payment and so they just stay out of the market altogether. [0:06:01] Darin: Yeah. Yup. Jonathan: Huh. So I guess that's that opportunity. You've been talking of -- what exactly, Darin, because it's been years that you've been coining this term "approachable resource." What is an approachable resource? Darin: What is an -- well, I mean, we should… Have we ever done a show on just: What is an approachable resource? Jonathan: I think that -- Darin: So I'm just recapping or -- Jonathan: Yeah. Well, I don't think we've ever done a whole show. We've certainly gone through it -- Darin: We haven't? Jonathan: -- with our Insiders but not necessarily here on the podcast. So just kind of a quick rundown of your view of the approachable resource and why that's so important in business -- if I can use why, if you'll forgive that. Darin: So the idea, so many rock stars out there are telling you that you need to be rock stars. You need to become the local rock star. You need to become the local expert. You need to become the local authority. [0:07:01] You need to become the neighborhood guru, right? Jonathan: Okay. Darin: And again, I like to deal with reality. If you go and you talk to anyone though, any person, just stop any person on the street and start talking to them about anything, they are going to reference not always the best information. They are going to reference the closest information in proximity to them. "Well, my sister said this." "My neighbor told me this." "My coworker whose uncle is a real estate agent in Anchorage, Alaska told her that this is what we should do." And so you might be being a rock star sitting up there on stage, playing your awesome little guitar solo, looking cool, but you're up on stage away from everyone else, away from the crowd where all the conversation, excitement, energy, all that stuff is actually taking place. [0:08:06] They're interacting with each other. You're not actually interacting with them if you're a "rock star." And I'm doing air quotes over here. Jonathan: I heard them. Darin: Okay. A "rock star," I said, like "rock star." Jonathan: Yeah. Darin: And so it's great to be a resource and have all that information but let's be honest, Jonathan. Sometimes people are not a resource; they're just a complete idiot. Jonathan: Nincompoop. Darin: But because they are in close proximity of someone, people listen to them. Jonathan: Right. Darin: And so I call that -- we want to have the right information. We want to be a resource but we also need to be approachable. We can't be the rock star that has the red velvet ropes and "You can't get to me. I'm not even going to make eye contact with you. We're not going to do a picture together. I'm not going to sign anything for you. I'm going to go back to my bus and get out of here." [0:09:01] You've got to be down amongst the people. That means you've got to be approachable. Jonathan: Right. That's where it's at. You want in on those conversations that are happening so that you can have some influence especially when it comes to your business. Darin: Well, exactly. I think you actually become more influential when you're approachable. Not to get political here but how many of us hear rock stars, musicians, or celebrities talk about something political and we're like, "They're so stupid. Why are they trying to talk about something like this? Just keep playing your guitar or making your movies and stay out of politics"? Jonathan: Sit there and look pretty. Darin: Right. So why do you want to be that to your target audience when they are like: "Well, you're just a stupid door opener, key holder person. Stop talking about finances or the economy or the job market and how that impacts real estate --" [0:10:07] Jonathan: Wow. Darin: "-- values or wealth. You're just this stupid person that took a few hours of class, now you open up doors. So just shut up." Jonathan: That's rough. That's rough, man, but interesting. Darin: Yeah. So I think approachable resource is where it's at. You got to know your stuff. But if someone doesn't feel like they can come to you and ask you questions and validate it with you, if they feel more comfortable going to their crazy Uncle Henry and asking him his opinions on real estate because he owns one duplex, then you lose. Jonathan: That was a good breakdown of the approachable resource, especially that idea of you're out there being a rock star that your opinion maybe doesn't count or what you think doesn't count and really you're dealing with somebody's biggest investment. By far, most people's biggest investment is their home so wouldn't it be better to be taken seriously? [0:11:11] Darin: Yeah. I just think if you lose the approachability factor -- I guess here's the thing. If you're selling books, if you're selling whatever, if you're selling just tickets to giant seminars or rock concerts, then great. You can get away without having to be approachable. But if your business deals with having to get one-to-one, face-to-face with someone and you're not approachable, you're sunk. Jonathan: So, Darin, how does this approachable resource now work into? Because you talk about it, we talk about it all the time with the Insiders, different angles you can use as approachable resource type of approach to your marketing but how does this play into the first time home buyer market? [0:12:03] Darin: All right. Perfect. We have to know the data first and the data says 60% of potential home buyers say that they want to purchase a home but they aren't even pursuing it because they believe their mortgage application will be rejected. So let's develop some copywriting skills. Let's develop some direct response marketing skills right now. Let's get into the conversation that's taking place in these people's head. What are they thinking about? Are they tired of paying rent or are they tired of having the rent jacked up every time their lease is renewed? Are they tired of having to move from building to building, community to community because they are trying to find the lowest rent or are they tired of having to deal with their landlord's stupid rules? Do they want a dog but they can't as a renter? Do they want to make sure that they have safety and security for their children and that they're going to have the stable upbringing in a certain school district and they don't want to have to worry about being moved outside of that because of rents going up? [0:13:13] You got to get into that conversation of what's taking place in their head, right? Jonathan: Well, that's knowing your market. That's the secret sauce to having your marketing stand out is actually doing the research like you're talking about because that's years of research that you'd figured out these are the needs of some renters. But it could be different in your area as well. But there are some common things. Darin: It could be absolutely different and you have to figure out you and your market and then make it your marketing because in the greater Seattle area, we're actually very transient. The income level has nothing to do with whether someone's going to rent or not. [0:14:04] There're a lot of people making six figures that are renting simply because they know that they're only going to probably be here for three years or so and then they're moving on to somewhere else for a job or being transferred out. So I've picked that up for my market from my research, my conversations of being approachable and getting into conversations with people and asking questions of not just regurgitating someone else's marketing out there. I have to figure out my marketing. Jonathan: Yeah, so you stand out. Darin: So when you know -- I'm sorry. What was that? Jonathan: So you stand out. I mean, that's the way to stand out and really simple way to stand out. Darin: Yeah, and it's like not only are you standing out but you're immediately resonating, right? Jonathan: Yeah, connection, with you having the solution to their problem. Darin: Yeah, like, "Oh, yeah. That's me. He's talking about me." Jonathan: "He's talking to me. How did he know that?" Darin: "He's talking to me." [0:15:00] "This letter, it's just addressed to 'renter' but it sounds like he's talking exactly to me. How does he know me? How does he know my situation so well?" Jonathan: That's the breaking down the guard. Break down the guard and then deliver. Darin: So if you know why people are not buying and continuing to rent, then your marketing, your content can be created around that. So now you're creating lots of different content about down payment programs and the myth of 20% down payment and the myth of 740 credit scores and things like that, right? Jonathan: Yeah, yeah. More directed towards their questions or their symptoms so that now you're hooking them in with the message which is I mean -- [0:16:01] A lot of stuff you listed out, Darin, people already know. How could people do a little bit of research and maybe find what's unique in their area? Because knowing what's unique in your area is now taking that to another level. Like you said, you have transient people so that, for me, as a landlord, I start thinking of rental angles on that. Darin: So I just think if you're not approachable, you're sunk. You have to be approachable because people are willing to talk to people that are approachable, right? So if you're the rock star, why am I going to come talk to you about my questions, my concerns, my doubts, my insecurities? I'm not going to talk to Will I Am or Ben Affleck about my doubts or insecurities with my real estate holdings. So if you're not approachable, you're sunk from the get-go. Now, if you are and you're generating any amount of leads and you can get into a conversation with these people and you are asking questions, to me it's the opportunity of asking questions and learning about their doubts, their insecurities, the questions that they are afraid to ask. [0:17:21] But when you become approachable, they are willing to open up like that. When they know that you are a resource, they're not going to be afraid to ask the questions because they know that you probably have an answer. Until you get at least on the phone if not face to face with these people and you start asking questions of them and they tell you what's going on and you start to see a pattern like, "Oh, five people are like this. This is probably what's going on in the marketplace. Ten people are like this. This definitely what's going on in the marketplace…" Jonathan: Yeah, then that ties in to getting those leads, right? You called it "content" but really, I mean, a postcard, a Facebook ad, a blog post, a video -- that's all content geared towards giving them that solution. [0:18:11] You're calling out their problem then you're their solution, right? That's how you end up getting the leads. Darin: Exactly. Jonathan: You gave away a whole strategy here, some copywriting advice. I hope you guys get all that because that's definitely smart. I mean, this is like 22 minutes and you just gave everybody a whole complete strategy of how to know their market, how to use their market's insecurities or doubts and needs to turn that into leads, right? Darin: And let me just end it with this. Instead of three questions or three tips, I'll just end it like this. Out talking with a certain number of buyers, me being actually kind of new to the real estate transaction again, right? I want to go and be involved in each aspect. [0:19:03] I want to learn it before we start training our people to do it a certain way because again the market's different here than it is going to be in Portland or Boise or Madison, Wisconsin or Orlando, Florida. There're going to be slight tweaks that you're going to have to make because the markets are different, the mindsets are different and the strength of the team or the agent is going to be different so how do we play to our strengths also? So as I'm out having conversations with buyers, one of the things that kept popping up that annoyed me but it's reality so I have to deal with it is how many people are watching HGTV, DIY, those types of channels and TV shows, Jonathan. Jonathan: Why does that bother you? Darin: Because that's not reality TV. [0:20:00] Again, they are getting bad information, misinformation. A lot of first time home buyers that we're dealing with are thinking that they can buy a really beat up house and turn it into amazing home with very little work and money. Jonathan: Yeah! You know what? Rachel and I always watch those shows and we're like, "Where did they get these numbers from?" because we can't do a bathroom for that or we can't -- we wonder about their numbers sometimes. It's interesting that you say that, Darin. Darin: Right. A set of buyers that I told the other night, I go, "You know what? I couldn't afford to buy a fixer upper until my second home actually." I couldn't afford it. Jonathan: Wow. Darin: Because the amount of money that I needed to invest into it, I had to have my primary residence that I owned for a couple of years and borrow on the equity of that one in order to afford a fixer upper. Fixer uppers aren't something that a first time home buyer should be buying. Jonathan: Right. Darin: They're too expensive. [0:21:00] Jonathan: Unpredictable. Darin: But that's not what happens on TV, you know. Jonathan: Yeah, yeah. Darin: And so until I was getting into those conversations, I'm realizing that and then I started -- Katherine and I are watching those shows. We've never watched those shows before actually in all honesty because we think they're kind of dumb because they are not dealing with the reality of what our industry is really like. But now we're watching it so that we can get into the head of these buyers, of these sellers because we know that that's where they are getting their information from. HGTV, DIY -- they are the resource right now. Jonathan: Wow. That's interesting. And smart too. Talk about knowing your market. Good stuff. So, Darin, what do we have coming up next time? Darin: All right. I want to talk about why you're actually a small business and you need to keep acting that way. You're acting too big when you're still a small business right now. Jonathan: Oh, getting too big for your britches on the next one. Darin: Uh-hmm. Jonathan: Sounds like fun, man. All right. So that's a wrap for Making Agents Rich number 136, how to become the approachable resource for first time home buyers. [0:22:07] Man, I feel like this audio could be a whole seminar. Good stuff, Darin. Thank you for being so generous. Yeah, that just happened. If you got that kick in the butt you needed to jumpstart your real estate business, then you can thank us by rating this show on iTunes. Thanks for tuning in, and remember to subscribe to get new shows delivered free. This is the podcastfactory.com. [0:22:53] End of Audio