Summary:
Time is a precious, limited, and non-renewable resource; once gone or wasted, it is gone forever. By taking control of our time, we will feel more confident and in charge of our professional journey.
Recognizing and eliminating time-wasting activities is not just about managing our time effectively; it's the crucial first step towards empowering ourselves to achieve our goals. This empowerment will instill a sense of control and confidence in our professional journey.
We will empower ourselves by recognizing the resources that can magnify the value of our time. Whether we hire assistants or utilize technology-based applications, such as time-tracking apps or project management tools, we can significantly enhance our control over time and resources, leading to more efficient and productive work.
Planning the use of time and the relative importance of each daily activity has been a key practice for thousands of years, ensuring that we are always prepared and organized.
Organizing daily actions and choices, whether through personal planning or technology-driven, enables us to accomplish more by leveraging our time effectively. This process, rooted in individual accountability and self-sufficiency, is crucial for taking control of our time and resources, thereby fostering a sense of accomplishment and productivity.
Article:
I am using the activities of a mortgage loan broker as an example. However, we can apply this principle to any other business activity where time is a precious resource and achieve the same result.
Approach every new business transaction expecting to handle issues, solve problems, close loans, and earn fees. By proactively working to remove delays, setbacks, excuses, barriers, and misrepresentations, we not only manage the loan process but also empower ourselves and take control of our professional journey.
Time is precious and not recoverable:
Avoid wasting time on others' affairs unless they ask for help.
Avoid giving unwanted advice and opinions, unless there is financial gain at stake. It will zap our energy and focus.
Giving or receiving unwarranted opinions is a sign of superficial relationships.
Becoming emotionally involved with superficial relationships is a waste of time.
Those who offer unwarranted opinions generally have subversive motives, often revealing that they possess a superior intellect.
Those who criticize us or our techniques generally have nothing to back up their opinions or adequate experience to substantiate them.
Getting angry is a destructive emotion that can cloud our vision.
Staying focused and avoiding unnecessary distractions can help us maintain a determined and goal-oriented mindset.
Study the motives of others to ensure we are getting a fair deal, rather than a one-sided deal, in which we are on the giving end, while they are on the receiving end, with little benefit to offer in exchange.
Maintaining a professional and patient demeanor is not just about personal conduct; it's a strategic move that ensures we are respected and valued in our professional interactions. This enhances your professional image and makes you feel more respected and valued in our interactions with others.
Please don't waste time on social media unless it's a means to accomplish our primary goal, which is making money. Otherwise, time spent will make us irritable, depressed, and anxious. It is a bottomless pit, a deep reservoir of strangers' likes that bring nothing to our lives besides the immediate gratification of appearing popular.
Social Media platforms are the ultimate frenemy, designed to get our attention and cause us to become addicted while raking in advertising dollars. They use algorithmic betrayal to stimulate us to follow their golden goose.
Their problem is that consumers have dozens of options and may search out alternative media platforms to seek the truth.
Stay focused on your goals while deflecting all time-wasting activities.
Save your idle time for yourself and your family.
Spend more time in your mental hobby shop.
A mortgage loan broker is engaged in procuring real property loans in exchange for a fee or compensation. With each closing, he realizes that he must repeat the process, otherwise he will essentially be unemployed. Working to receive repeated commissions is the defining lifestyle of any good salesman.
Each example is named after a Rock and Roll group or one of their songs:
I can't get no satisfaction: The Rolling Stones
A loan broker calls or emails a lender to present material information about a loan request, but lacks knowledge about the proposed loan transaction. The broker offers no information about the borrower's qualifications or relevant details about the security property.
Why do some mortgage brokers merely transport a file with no inquiry? The loan broker's role is not just to pass on the package, but also to collect the data and reasonably assess all the material facts with the aim of full disclosure. This means providing all relevant information about the borrower's qualifications and the security property. Upholding this principle of full disclosure is a fundamental aspect of a loan broker's role and a mark of responsibility and trustworthiness. It informs the borrower and empowers them to make informed decisions, ensuring they are fully aware and in control of their financial choices.
Following industry standards and prudent business practices will save time and frustration.
Hang on, sloppy: The McCoys.
Inviting a Lender to sort through a sloppy loan package submission is time-consuming. The borrower's loan broker is eager to close the loan and earn a fee, so that they may accept a minimally completed loan application without complete financial data.
As a loan broker or agent, it's crucial to ensure the accuracy and completeness of the loan application to avoid potential issues down the line. Incomplete applications can lead to significant problems, and it's your responsibility to prevent them. Knowing these potential pitfalls enables you to navigate the loan closing process more effectively, fostering a sense of caution and attention to detail and ensuring that you are diligent in your role as a loan broker.
Following industry standards and prudent business practices will save time and frustration.
The borrower was infatuated with inflated valuations:
Is time spent sorting out Pie-In-The-Sky property valuations? A few borrowers have illusions of grandeur when suggesting the value conclusion of their collateral property.
A few appraisers will complete an appraisal with inaccurate data, including dissimilar comps, improper adjustments, mismatched data, and plain, messy quality. The funding lender may pull a property profile and go online to analyze comparable properties and draw conclusions about value, only to be disappointed. A borrower's broker should have done this upfront, which would save time and aggravation.
Money for nothing and profits for free: Dire Straits
A borrower has little or no skin in the game. Many borrowers purchase property with little or no down payment. The new owner then borrows rehab money from a fix-and-flip lender to improve the property.
When they come to you, their loan request is intended to refinance the purchase money first loan and have the rehab debt rolled into one new replacement loan. The borrower owns the property but has no capital at risk and could potentially walk away as the market declines.
Foolish games: Jewell
A loan request based on future rather than current property valuation and current equity is a 'foolish game' that some borrowers play. Future value is speculative and cannot be relied upon. For instance, a borrower might overestimate the future value of their property to secure a larger loan. This approach can lead to unrealistic loan amounts and potential defaults. The idea that a property will increase in value cannot be relied upon unless the lender's business model is to make loans based on hypothetical future value, such as construction and fix-and-flip loans. The business model is acceptable if the risks are priced into the loan. However, if the future value is overestimated, it can lead to a situation where the borrower is unable to repay the loan, resulting in potential defaults and losses for the lender.
A real estate loan secured by a lien on the property is typically funded based on the property's current equity. The market value less the lien(s) equals the value of protective equity. A loan request that does not contain significant protective equity at the origination will leave the lender at risk of the borrower defaulting:
Supercilious and obnoxious fruitcakes:
Pushy and condescending borrowers! Some people love to show disrespect by pretending they know how business works, but you don't. For instance, they might dismiss your expertise or demand special treatment. The term supercilious comes to mind. They behave as if they are better than you and that your opinions, beliefs, or ideas are not necessary. They feel you are beneath or of lesser quality because they have more experience than you. They may have little or no experience, but you have 10 to 50 years in the trenches. The opposite side of arrogance and superciliousness is often insecurity. Of course, you don't need any documents- this is hard money, don't you understand the business?
It's crucial to remember that treating everyone you meet with dignity and respect is not just a matter of courtesy; it's a professional standard. Unprofessional behavior, such as belittling others or dismissing their expertise, undermines the trust and cooperation essential for successful loan transactions and reflects poorly on the individual. By maintaining professionalism and open communication, you foster an environment of respect and collaboration, making everyone involved feel more respected and valued and ensuring that the industry's professional standards are upheld.
Silence is not golden: Tremeloes.
The borrowers transition from being interested in obtaining the loan to being indecisive, silent, and unresponsive. This behavior can lead to delays and misunderstandings, potentially derailing the loan process. They do not return phone calls and seemingly disregard the service provider's time value. The quicker this loan goes on hold (or into the trash bin), the less time is wasted. Processing and underwriting staff should focus on transactions most likely to close.
The Grateful Dead:
This situation is referred to as 'The Grateful Dead' in the context of loan transactions. It's a situation where the loan broker should have known that the transaction was unfeasible and should never have presented it, but still pressured the funding broker to approve and fund the loan. If the loan defaults, this can lead to wasted time and resources, potential reputational damage, and financial loss.
In most cases, saying no to a loan broker who should have known the transaction was a loser and should never have been presented is problematic. The loan transaction, borrower, and collateral property have no chance of success. Still, the loan agent pressures the funding broker to perform supernatural miracles to approve and fund this (POS) loan.
Most mortgage brokers are highly professional and always submit complete packages with full disclosure in mind. They understand the need to balance being a good fiduciary for the borrower with maintaining a professional approach when dealing with the lender. Please take a look at those professionals to work with and make a mental note of others to consider for future opportunities.
Any business professional could construct similar examples in their chosen field. The results will be identical, following industry standards, and using their time wisely.