January 2023

tfeatured mortgage pro

Alan Mack

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Weighing your options —

The pros and cons of trying to time the market

In many circles, when conversations about buying and selling homes arise, the concept of “timing the market” invariably emerges. Some people will swear by the practice, citing example after example of instances where buying low and selling high has worked for them, or for people they know. Others will say that timing the market is not only impossible, but that the best time to buy or sell is when you’re ready to buy or sell Period

So, what is fact and what is fiction? Can the market be accurately timed, so as to mitigate spending and maximize profit? Or are those who seem to have an uncanny knack for buying when homes are at their lowest price, and selling them at the highest points, just incredibly lucky? Unfortunately, despite entire books being devoted to the practice of learning how to time the market, it’s most certainly not an exact science. But like most things in life, there are definite

pros and cons to trying to time the market. Here’s a look at some of them.

The pros of trying to time the market

Ensures Education If you’re attempting to time the market, you’re going to have to do your homework. You’ll need to monitor home values, interest rates, FED rates, neighborhood appreciation/ depreciation, inventory levels, and more Overall, this works to your benefit, as you’ll be learning something new nearly every day, which can only help you to become an even savvier buyer or seller in the future. Knowledge is indeed, power.

Protects Your Pocketbook Being mindful of what the real estate market is doing certainly increases your likelihood that you’ll get a better deal than if you completely omit market conditions from your

investment strategy. Generally speaking, making an effort to time the market, although not failsafe, will make you a more informed buyer or seller, thereby increasing your likelihood of securing better pricing, terms, concessions, or conditions.

Puts You in a Position of Power Whether you’re a potential buyer in a down market, or a seller in an up market, you have a lot more bargaining power during decidedly lopsided markets Subsequently, as a buyer or seller, you will have far more leverage in an unbalanced market than during periods of relative equilibrium/neutrality in the real estate market.

The cons of trying to time the market

Potential for Letting Great Properties or Profits Pass You By Trying too hard to wait to buy until home prices hit rock bottom, or when

Can the market be accurately timed, so as to mitigate spending and maximize profit? Or are those who seem to have a n u n c a n n y k n a c k f o r b u y i n g w h e n homes are at their lowest price, and selling them at the highest points, just incredibly lucky?

mortgage interest rates drop to their lowest, can lead to missed opportunities to invest, or to become a homeowner Holding out for just one more price reduction or decrease in interest rates may cause you to lose out on an incredible deal.

Missed Opportunities to Make Memories

Waiting too long to buy or sell, in effort to time the market can ultimately cost you valuable time Instead of taking the profits from a home sale and purchasing a new home when conditions are favorable, you ultimately may miss out on awesome opportunities to make new memories in your home. Consider that buyers who attempt to time the market perfectly may miss the chance to celebrate special occasions and milestones in a new home.

Market Stability Is Never Guaranteed It’s long been said that the only constant in life, is change That’s undeniably true when it comes to the real estate market. There is no guarantee that interest rates, or home prices won’t change on a dime. The inherent unpredictably of the real estate market means that even the most well-laid plans for buying or selling are not immune from potential and/or substantial market swings.

Although there are benefits and potential pitfalls to consider when deciding whether to try your hand at timing the market, one irrefutable fact remains An investment in a home is a significant undertaking For the overwhelming majority of people, it will be one of the biggest financial decisions of our lives. As such, deciding to buy or sell is not something most people will want to go into alone, or haphazardly. With the help of an educated REALTOR,® a skilled mortgage professional, and guidance from other trusted advisors such as your CPA or financial advisor, conducting due diligence before making any decision just makes sense.

Take the lead Strategies for everyday lead generation

Generating new leads that will eventually become clients is one of the most important things mortgage professionals can do to succeed. But lead generation often ends up taking a back seat to the million other things lenders are responsible for. The key is to turn lead generation into one of those daily responsibilities so that it eventually becomes an automatic part of what you do every day Check out these smart ways to generate leads:

Develop a Network of Service Providers

Creating alliances with like-minded service professionals is an excellent way to increase your sphere of influence. Form relationships with REALTORS,® real estate attorneys, appraisers, home inspectors, contractors and even other mortgage professionals. Having an established network of industry peers allows you

to be a resource to your clients by referring them to vendors you know and trust, and those vendors will return the favor by sending prospective clients to you.

Be Strategic with Social Media

It’s not just for Millennials anymore. If you’re not active on social media, you are missing the opportunity to make meaningful connections with potential clients It’s not enough to just create a Twitter, Facebook or LinkedIn profile. You actually have to use them to your advantage. Be sure you are connected to everyone in your network, and spend time each day liking and sharing relevant content, such as new real estate listings, personal achievements and photos from events. On LinkedIn, be sure you’re endorsing other pros; every time you do, they get an email that lets them know you did so, which keeps you top of mind.

Become a Presence in the Community

Making a name for yourself as someone the community can count on is a time-tested way to generate new business If you already have a cause that is near and dear to your heart, make it your mission to become even more involved through volunteer work and donations. If you don’t currently have a cause you’re passionate about, ask around to find out which local organizations are most in need of help. Volunteering gives you the chance to connect with a wide range of community members in a meaningful way, and you’ll become known for being a good person as well as a great industry professional and that’s a winning combination!

Change Your Routine We all have our daily routines, but getting stuck in a rut means you’re limiting your exposure to new people. If you drive through the same Starbuck’s every morning, take the time to park and go inside instead to chat with folks in line or better yet, try a different coffee shop altogether Instead of having lunch delivered, go out to grab a bite and talk to other diners. Do your grocery shopping for the week at a different store in a new part of town. Whatever you choose, make an effort to get out of your comfort zone, meet new people and talk about your business “What do you do for a living,” is usually one of the first things people ask, so it will be a natural transition to telling others about the outstanding service you provide.

Support Other Local Businesses It always makes sense to support small businesses in your community. Whenever possible, make the choice to support a local vendor, rather than a large national chain, and get to know the business owners. Strike up a conversation

about the local market and all the things that make your area unique. Be sure to become a member of your local Chamber of Commerce to take advantage of everything they offer Becoming involved in the local business community will further raise your profile and help you become a trusted, recognized name that people are happy to recommend.

Lead generation doesn’t have to be complicated, but it does have to be consistent Employing one or more of these strategies will make generating leads a natural part of your daily activities and help your business grow.

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routine

• Regularly remind your sphere of influence that you welcome new clients.

• Patronize local businesses and encourage others to do the same.

• Don’t assume clients will refer; ask every client to share your name

Lead generation often ends up taking a back seat to the million other things lenders are responsible for. The key is to turn lead generation into one of those daily responsibilities so that it eventually becomes an automatic part of what you do every day.

Don’t miss these lead generation opportunities

Become involved in local government or business organizations.

Alter your

to create opportunities to meet new people

4 Techniques to fine-tune your mortgage practice

To stand apart from the pack, a mortgage professional must rise above the status quo. After all, it’s often the little things that separate average loan officers from truly great ones, the kind that clients can’t help but rave about. Plus, fine-tuning your professional approach keeps you and your business fresh and ahead of the curve. With that in mind, here are a few easy-to-apply yet incisive ways to leave a memorable impression on your sphere of influence

Cultivate a Track Record While devising a loan, you’re handling a client’s sensitive financial information, while acting as a guide through what’s often a complex and stressful process. How can you set your client’s mind at ease? For starters, provide proof that you’ve successfully guided others through the lending process and can be trusted to do it again. Testimonials from past clients, stats that indicate your turnaround time and closing rates, and even displayed certifications can meaningfully convey your expertise to potential clients and referral partners.

Accessibility is Everything While it may seem obvious that accessibility is a key factor in client satisfaction, lack of availability and responsiveness are among the most-cited issues that borrowers have with lenders It’s easy to see why: borrowers are in the midst of the biggest transaction of their lives If a lender lags on returning emails and phone calls, it inspires insecurity in the client. To combat this issue, consider sending out weekly update emails or text messages to soothe anxieties and reinforce the lines of communication. This preemptive approach not only serves your clients well, but can limit the worried phone calls or emails you might receive otherwise.

Be Ready to Counsel Clearly As a lender, you’re the expert. Borrowers not only rely on you to source the appropriate loan, but also to explain any fine print and fees. This amounts to more than simply outlining the terms of a contract or loan product. You’ll need to be ready to translate industry terminology into

information easily understood by the average homebuyer. In addition to explaining the function of a certain fee or provision, you’ll need to explain why it is included and how it compares to offerings made by other lenders. In this day and age, transparency is extremely important to consumers, and laying all the details out on the table in clear terms can go a long way in building lasting trust

Harness the Power of Technology Mindfully integrating technology into your practice can save time and positively impact your bottom line, as well. From social media and online marketing to database management systems, there are digital tools out there that can streamline your business for the better. What’s more, these tools can help you track and quantify your progress, spending, and goals. The fact is, technology isn’t going away. If you want to build a business that can evolve with the times and the market, you’ll need to use it to your advantage. If you don’t want to incorporate these systems on your own, you may consider hiring a team member even part-time who can bring their brand of tech savvy to your enterprise

There are plenty of ways to elevate your professional position, from taking ongoing education courses to hiring a coach But when it comes down to it, professional growth begins with you and the decisions you make to better your practice. Start with a few of these practical applications and over time, you and your business will be better for it.

AL AN MACK

ALAN MACK

Alan Mack, long-time mortgage expert and specialist in luxury financing, has applied his 34 years of experience in the industry to become one of the most accomplished and sought after financing advisors anywhere Take one look at his career and it’s clear he was destined for greatness from the start

Only a few years after getting into the mortgage industry in 1988, Alan helped initiate Bank of America’s mortgage pilot program, and soon went on to join the bank’s Platinum Club. At the same time, Alan became the number 2 producer in all of Southern California, but the accolades do not end there. Alan has also received the Five Star Professional Award a total of 9 times, and is one of only four in his region to do so.

In the past few years, the trajectory of Alan’s career has changed considerably. In 2020, he decided to move away

from working for banks to initiate his own corporation, Mack Financial Services, Inc. Now, Alan draws on his extensive knowledge to serve clients as an advisor, which makes his business much more flexible

His unique approach allows him to offer unbeatable service to clients who normally wouldn’t have nearly as much say in the proceedings Alan shops clients with what he calls his “arsenal” of high net worth catering banks, who then compete for the chance to invest with the client. As a result, he is able to offer unheard of rates that even big banks can’t come close to. And by doing business with multiple nationwide banks, Alan is not limited to California where he’s based, but can take on clients all across the country.

Aside from his proficiency in the field, Alan’s primary strength is his dedication to flawless service. “I’ve always

M A C K F I N A N C I A L S E R V I C E S, INC.

prided myself on service,” he says. “That’s what it’s all about.” His business is essentially 100% repeat and referral based, all because he insists on the Golden Rule of treating his clients exactly as he’d want to be treated

As a child, he was taught by his grandfather, a successful businessman, “If you take care of your customer, your customer will take care of you ” Not for a moment does Alan ever forget this advice, and because he is no longer subject to the needs of a bank or employer, he can apply it to the fullest extent. For this Alan is very grateful and explains, “I don’t answer to anyone except my client. I’m not handcuffed anymore like I used to be. I’ve taken

m y 3 4 y e a r s i n t h e b u s i n e s s , w i t h m y e x p e r t i s e a n d knowledge, and put it to great use in helping clients.” Having moved on to working for himself, this aspect has made his business more rewarding than he could have imagined Without limitations, Alan is now free to use every one of his skills and connections “to make the experience of buying a home the best it can possibly be ”

Outside of work, Alan puts most of his time and effort into improving himself as a professional and as a person; a balanced and well-rounded lifestyle are key for him. He is an avid bodybuilder, a passion he has pursued for decades, and he puts great emphasis on nutrition and

WITHOUT LIMITATIONS, ALAN IS NOW FREE TO USE EVERY ONE OF HIS SKILLS AND CONNECTIONS “TO MAKE THE EXPERIENCE OF BUYING A HOME THE BEST IT CAN POSSIBLY BE.”

physical fitness. He is also a very spiritually inclined person, and strives to maintain his spiritual and emotional wellness at all times in order to stay grounded in his work and personal life. These things can be attested to by Alan’s wife of 25 years, his best friend and soulmate, with whom he spends as much time as possible and whose support is essential to his success

The future of Alan’s business is inextricably linked with the future of the industry itself While his plans consist of continuing to provide excellent and attentive care to each and every one of his clients, he does foresee some drastic changes for real estate and the finance industry at large.

“As is the case in many fields, we are moving towards greater automation and a decrease in human interaction. In this climate, people in the industry need to find a way to stay indispensable.”

For Alan, it’s simple: he believes his own approach, working for clients and connecting them to a bank, is the way of the future. Utilizing such an intimate knowledge of the inner workings of the industry, as he does, will surely become even more important than it already is So, while everything seems to be shifting, these changes are nothing Alan can’t handle, and his deep knowledge combined with a true commitment to unbeatable service guarantee him a prominent place in the future of real estate.

Easy ways to save for a down payment

Saving for a down payment is one of the most exciting, important financial moves you’ll ever make. It can also be scary and intimidating to imagine how you’re going to be able to save the recommended 20% down. But never fear! There are many ways to save for a down payment that are easier than you think and some you might never have even considered. Here are five easy ways to save for a down payment on a home:

Cut Out All Non-Essential Spending Any unplanned purchase of $30 or more is considered an impulse buy. If you have even a few of those a week, they can really add up! Now is not the time to be picking up the happy hour tab for your crew or splurging on a new cell phone. Plan a budget that covers the essentials and your bills, and save everything that’s left over toward your down payment.

Find Cheap or Free Alternatives When you’re saving to buy a home, every penny counts. Take a hard look at where your money is going and see where you can cut back Instead of cable or satellite, opt for a basic Netflix or Hulu package. Nix the gym or Soul Cycle membership and work out to online fitness videos at home. Skip the daily Starbucks run and make your own coffee; same with bottled water use a glass or stainless bottle and fill it with filtered tap water You’ll be amazed at how much you’re spending on socalled necessities and how much more quickly your down payment fund will grow when you funnel that money into it.

Save All Found Money

Put every penny of overtime pay, bonuses, tax refunds, and pay increases into your down payment fund. It’s always tempting to spend found money, but the rewards of a spending spree will be fleeting, while the ultimate reward of saving for home ownership can be life-changing.

Make Gifts Count If you feel comfortable doing so, tell family and friends that you are in the process of saving for a down payment and that instead of birthday or holiday gifts, you would love for them to contribute to your savings. If the direct appeal isn’t your style, you can still make gifts count toward your goal. Let people know you’d like ‘practical’ gift cards good for things such as gas and groceries. When you use the gift cards to pay for those items, place the equivalent amount of cash into your down payment fund.

Find Ways to Earn Extra Money Whether it’s a matter of holding a yard sale, selling your extra stuff online, freelancing, or getting a part-time job, look for every opportunity to bring in extra cash There’s no such thing as working too hard when owning a home is your goal. Plus, the more time you spend working, the less time you’ll have to be tempted to spend your hard-earned cash.

The most important thing to remember when saving for your down payment is not to get discouraged. It will take some time, but it will be worth all the effort when you can proudly call yourself a homeowner.

A fresh start Winter home staging

Listing a home for sale during the winter months comes with its own unique set of challenges, not the least of which is how to stage a home for the season once the holidays have passed. It’s easy to make a home look beautiful and inviting when everything is merry and bright, but more challenging when all the decorations have been put away and the weather is still gloomy and gray But with some creativity and the right tools, it’s possible to make winter home staging look easy. Here’s how:

Clear the Clutter Just like we tend to lighten up our eating habits after the holidays, our visual diet can use a break, too The holidays are all about sparkle, shine, glitter and glam. And while all those things are beautiful, they can become overwhelming over time. That’s why January is the perfect time to stage homes to look clean, soothing and clutter free. It’s a welcome

break after the visual feast of the holidays. And because people tend to be spending most of their time indoors during the winter, clutter or anything overdone can contribute to feelings of claustrophobic cabin fever.

Shift the Color Palette

After a season of bright red, kelly green, and shiny metallics, a more muted color palette feels right this time of year Try adding accents in rich, classic shades like slate blue, burgundy, ivory and sage green. You definitely want to incorporate color inside to counter the gray skies outside, but it should be muted and subtle, rather than bright and bold.

Add Layers and Texture

Potential homeowners want to walk into a home that looks and feels like a place conducive to snuggling in and relaxing. Adding texture and layers with decorative rugs, warm throws

and extra pillows will create those feelings Focus on cozy, touchable fabrics such as flannel, faux fur and chunky cable knits that look like a favorite sweater. Make sure bedroom comforters and bedspreads have the same seasonally appropriate look and feel.

Bring the Outdoors In Rooms always feel more authentic when you bring a bit of the outside in. Place seasonal citrus fruits like oranges and grapefruit or pomegranates in a wooden or heavy ceramic bowl on the kitchen or dining room table Pine cones offer the same earthy, organic ambiance Even a small, indoor herb or succulent garden placed on a windowsill brings a dash of much-needed green life to a space and serves as a reminder that spring will eventually arrive.

Go Into the Light When it’s dark and gloomy outside, it’s important for the home’s interior to look bright. Consider upping the wattage of the bulbs in lamps throughout the house and adding sleek torchiere lamps in dark corners to cast a warm glow

throughout the room Don’t forget to leave the porch light and other exterior lights on so the home’s exterior appears inviting.

Show Other Seasons Ask the homeowners for photos of the property during the spring and summer. Put them together in a photo album or in picture frames placed strategically throughout the house. Those viewing the house will appreciate seeing the flowers blooming in the spring or the garden overflowing with vegetables during the summer

A d d T h o u g h t f u l D e t a i l s Little details can make a big difference to prospective homeowners who are viewing the house. Make sure there are clean doormats by all exterior doors so they can wipe their feet before coming in No one wants to walk around inside all bundled up, so bring in a coat rack or place some removable hooks in the entry way so they can shed coats, scarves and hats and walk around unencumbered.