I was born and raised in Arizona and have enjoyed watching our state grow all my life. After completing my Bachelor’s Degree in Engineering at ASU, I enjoyed a 14 year career in the semi-conductor industry. I worked for a large bellwether company within that industry as a project manager before choosing to move to Realty Executives earlier this year. I have always enjoyed working with companies that represent the pinnacle of their industry, as Realty Executives does in real estate. Encompassing this is the real estate industry itself which has recently validated again that it is a bellwether of our nation’s economy.
When I was asked to write an Article for Executive Launch, my first thought was: “Man, I am so busy! Between setting up my business and working on generating leads, training, and a dozen other things, where will I find the time?” The next thing that popped into my mind was: “Gee, where should I even begin to describe this exciting new career experience?” Then, after some thought, I realized what a great opportunity this was to address the questions 9 out of 10 people consistently ask me: “Why did you change careers?” “Why real estate, and of all times, why now???”
The answer is simple and has not changed since the time I started. I’ve always wanted to make a positive difference in people’s lives. I watched many economic cycles from the sidelines and determined that the right time to pursue real estate was when prices were coming down. Often, the best time to start something new is when there has been a change in order of magnitude (like a bubble) that affects the typical way of doing business. Let me explain. It was inevitable. The Case-Shiller Home Price Index (HPI) for Maricopa County rose a firmly correlated, linear 4-5% year-on-year from the years 1995 to the end of 2003; it went from about 75HPI to 126HPI. Then, at the beginning of 2004, we experienced a very non-linear (steeply upward curve) to the peak in mid 2006. The HPI rose from 126 to 227 during that time. It rose, in just that 2.5 year period, over twice as much as it had in the previous 8 years. That’s like 16 years of growth in 2.5 years! Something clearly had to give, and needless to say, we have had to adjust to the market, but that doesn’t make it a bad market. Quite the contrary; this market is one full of opportunity. Today, the HPI is much more near the original linear trend line than back in ’06, but predicting when the bottom hits is not what creating a career is about. It is more a combination of the market conditions and one’s personal motivators and conditions.
Abraham Lincoln once said “If I had 8 hours to chop down a tree, I’d spend 6 sharpening my ax.” – Starting when business is slower has been good for me because I’ve had more time to set up my infrastructure, prepare lead generation processes, and build business relationships. I feel that my longer term sustainability, in terms of processes, infrastructure, and relationships, could have suffered if I had started in a faster-paced market because I wouldn’t have been able to forego the immediate opportunity of lost income.
In contrast, now is the time to work hard on refining longer term tools like business plans and business management processes and, be picky about where to spend precious money and time. This way, there will be minimal time spent performing standard tasks, like setting up portals and creating CMA’s when you need those tasks to be second nature. For example, I have set up an Exchange Server for my email that allows my contacts, calendar, and emails to seamlessly sync between my laptop, desktop, handheld and any available internet computer terminal.
In my first few weeks, I spent 25% of my time on sales and 75% on infrastructure, including lead generation systems training, office computer network, contact management system, PLLC set up, branding, website, knowledge/process documentation management systems, finance and accounting; not to mention interviewing and establishing team relationships with title companies, lenders and inspection companies, taking classes from various sources like NAR/GRI, the Az School of Real Estate & Business and Executive Launch. Let’s not also forget training on flexMLS! My time has since flipped to about 75% sales and 25% infrastructure. My website still needs work, and I need to finish it soon as I push to get to nearly 100% time on lead generation and serving my clients.
When I tell seasoned agents that I chose to start my career in RE at this time, the responses are usually limited to two types: It’s either: “Wow! You’d better get out now!” or “This is a great time to get in!” There is no middle ground response in this market. I, however, have to agree with William Feather who said: “Success seems to be largely a matter of hanging on after others have let go.” Now is a good time to start because there are fewer agents affecting the industry and competing for business. Challenging times in any industry sift out those who are not as dedicated or who take an opportunity to pursue other fields. Sometimes this can improve public perception of the industry. I have met many people who at first look at real estate agents and me with suspicion. For no apparent reason, I find myself defending my integrity to folks who have just met me. It is often shortly after, that they share the bad experiences that they had with certain previous agents. This type of scenario often occurs in open houses, where I am able to recognize that it’s not personal and practice my response.
1996 Time Magazine Man of the Year and former CEO of Intel Corporation, Andrew S. Grove is known to often repeat “Only the Paranoid Survive”. So much so that he wrote a book of the same title on how organizations revitalize from dramatic, dissonant changes like the one we are in. Sometimes fear causes us to stand still when we should be moving the fastest. Yet when fear is higher, you stand to develop the work habits and respect for
tough environments that provide invaluable lead generating methods for sustaining business through both soft and solid times.
One of the questions that made me most anxious was when a potential client asked: “So how long have you been selling real estate?” I’ve learned not to beat around the bush and be direct and honest and simply tell them that this is my first year selling real estate, but that I’ve carefully chosen a broker and office where I can surround myself with the best Realtors® who possess a wealth of knowledge and freely provide guidance and support. My potential clients appreciate the honesty.
I’m tracking reasonably well against my goals to close this year. I represented the buyer on my first sold home, four and a half months after starting Executive Launch. I have a few qualified buyers that are determined to close before the end of the year and a listing that will hit MLS in January after remodeling.
I won a listing appointment on a 2005 high-end luxury property just this week (results pending) where I had to honestly and thoughtfully deliver a tough message. On top of all this, I am actively serving new, more recent clients with their future home selections. Yet, I have only started to explore all the tools from Executive Launch. I’ve found that open houses are pretty successful for me so far. I am meeting 2-3 new clients per week from holding at least 4 open houses per week. It’s a lot of work, but a lot of fun too.
I am supremely blessed to have the support of my family and friends, Dale, Barbara, Scott, David Simkins and the full staff of Executive Launch as well as many great and experienced Realtors® in my Scottsdale Shea at 101 office. These folks are making a real difference in my life and reinforcing the spirit of “I Believe.” Don’t let anyone tell you that you can’t do it. With a healthy dose of determination, a friendly, knowledgeable, quality-results oriented Realtor® should be able to match up with clients and build a solid clientele.
To be bearish about the future of real estate in Maricopa County is tantamount to being bearish about the future of the USA, which is a truly risky proposition. Frank Tyger is quoted as saying: “If at first you do succeed, it can give you a false sense of importance.” So don’t be afraid to make mistakes. Lord knows, I have had my share. Like my barber says when he makes an unintended cut: “Don’t worry. It grows back.” So who is telling you that you can’t do it? Is fear telling you that it’s easier to give up than to learn from missteps and press forward? Don’t listen to the naysayer; listen to the experts and people who have your best interest in mind and compare that with what motivates you.
Best Wishes in our coming year! And remember, what you sow today will define your wealth in the near future and days to come.
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