March 2019 by Featured Agent

March 2019

Buyer beware

Common pitfalls to avoid when purchasing a home

Managing

client stress

Andrea Gordon

also featured:

David Jaffe Chris Schoenthal

Tricks of the trade

Improve your time management skills

contents

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professionals 4

Tricks of the trade — Improve your time management skills

Managing client stress

t featured cover agent

Andrea Gordon

q featured mortgage professional

David Jaffe

6 q featured mortgage professional

Chris Schoenthal

buyers&sellers 7

Buyer beware â&#x20AC;&#x201D; Common pitfalls to avoid when purchasing a home

FHA, Fannie Mae & Freddie Mac â&#x20AC;&#x201D; The basics of government mortgage loans

Tricks of the trade —

Improve your time management skills One of the greatest gifts being in the real estate industry provides, lies in the fact that no two days are ever the same. It keeps you on your toes, keeps your mind active, and your days often seem to pass in the blink of an eye. With amazing opportunities for personal success — all the while being able to genuinely help others — there’s frankly no other career quite like it.

However, a real estate career is certainly not known for being a particularly predictable profession. Appraisals can come in low. Basements flood. Multiple offers come in all at once. Financing gets delayed. And sometimes that’s just a Tuesday! Sometimes it can seem downright impossible to not only plan your days, but actually stick to your plan. 4

That’s not to say you can’t make the most of each day, even when the not-so-uncommon curveball is thrown your way. While you can’t control potential challenges that may arise, nor make the day any longer, there are ways you can be sure to make the most of your time. Here are seven tips for best managing your time as a professional in the real estate industry.

Acknowledge Your Business Goals — Remind yourself of your short-term and long-term business goals each day. That way, you’ll be able to look at the big picture when scheduling your days, and your weeks. By reminding yourself of your immediate goals, and where you would like your business to be Copyright Featured Agent Magazine

Learning to manage your time as a busy real estate professional can take effort and dedication. But it can also feel like a life-saver in terms of keeping you calm, cool, and collected in a career synonymous with constant change and unmeasurable rewards.

next quarter, next year, or five years from now, you’ll keep your sights firmly focused on working towards those overarching goals, even when things get hectic. Put Effort into Prioritizing — There are many methods of prioritizing your tasks, but one of the simplest ways to do so is to sort your various responsibilities into categories so you can take a clear look at what is most time sensitive, what can be put off if necessary, and what items can be postponed easily. By prioritizing your tasks, you’re less likely to stray from your plan, and avoid feeling like you’re busy, yet unproductive.

Use Technology to Track Your Time — Time tracking and time management apps can be incredibly useful for real estate professionals on the go. By logging how you spend your time, you’re likely to see patterns, thereby being able to identify your most productive days, or pinpointing tasks that wind up taking more time than they should. When you can look at how you planned to spend your day, and compare it with how you actually spend your time, you’ll be in a better position to see where adjustments need to be made.

Learn to Live with Saying No — As real estate professionals, it’s hard not to say yes to every request, invitation, or opportunity that comes your way. After all, you’re in the business of customer service. But you’re also in the business of being honest, which means that sometimes you’re going to have to say no to a request when you simply don’t have the time, and that’s ok. Your clients may see you as a super Copyright Featured Agent Magazine

hero, but you must remember you’re only human and can only take on so much.

Minimize Distractions — Multi-tasking is a way of life for most real estate professionals, but there can be too much of a good thing. Try reducing the number of notifications you receive from various apps, or social media during times when you need to focus. Or, consider silencing your phone while you’re working on a new listing. Little distractions can lead to big delays, and wasted time.

Decide to Delegate — Learning to delegate can be a challenge, but committing to do so can significantly lighten your load, and free up extra time. To get started, it may be beneficial to delegate the least time sensitive items until you become comfortable with entrusting others to help you meet your goals.

Sleep, Eat, Exercise, Repeat — Getting plenty of rest ensures that your mind is poised to function at its peak level. Likewise, a balanced diet, will help you to maintain your energy level throughout the day. Exercise is also a powerful tool for learning to manage your time, through relieving stress and providing a boost of endorphins to feel good during the day and sleep well at night.

featuredagent David Jaffe magazine

It’s hard to believe that David Jaffe, who has ranked as one of the nation’s top 100 Mortgage Originators for the past 20 years had a rough start in the mortgage industry. Yet his candor is a likely reason he’s closed more than $3 Billion in mortgage loans, creating thousands of raving fans in the process.

“My first 18 months were terrible,” he laughs. “But I don’t like quitting, and I was young, and single, so all I did was work,” he says. He also became an early adopter of business coaching; a decision he counts amongst the best decisions he’s made in his career. Indeed, within just a few years, David was learning from none other than New York Times bestseller, and renowned mortgage expert, Todd Duncan. Suffice it to say, his decision to follow the guidance of Duncan paid off, as David developed discipline, accountability, and an inimitable work ethic — all keys to success in the mortgage industry.

“I didn’t need to reinvent the wheel. I just looked to see what those who were successful were doing,” he says. For David, the most important included meticulous database management, providing every borrower with a second-tonone customer experience, and positioning himself as a mortgage consultant, rather than a transactional originator.

“I’m passionate about helping people achieve financial freedom. It is very important to me that any mortgage I originate is going to fit into my client’s overall plan,” says David. “For some reason we tend to compartmentalize mortgages as an entity separate from the rest of our financial picture.” David believes this differentiation can cause people to lose out on terrific opportunities offered through homeownership in a high-cost state like California. “I educate everyone I work with about the importance of developing a relationship with a mortgage planner, just as they have a relationship with a CPA or a Financial

Advisor,” he explains. The fact that he is the one who helps clients secure the largest debt of their lives, is never far from his mind. “If I help someone to secure $500,000 in debt, it is my responsibility to help them manage that debt wisely.”

To that end, David says that simple, yet powerful tools, including Rate Watch software ensures that the moment it makes sense for a client to refinance, he is notified. “People are bombarded by mortgage advice, news, and advertisements every day. But the only time anyone should refinance is if it saves money or helps them achieve their financial goals,” says David.

Although he’s coming into his third decade of success in real estate financing, David still finds his work with clients, referral partners, and younger mortgage originators rewarding. “I particularly love the financial planning aspect of my work,” he says. “Helping others to restructure their financial life is very satisfying.”

David also says that counseling first-time buyers through the process of purchasing a home, remains exciting. Additionally, he finds the ability to provide mentorship to upand-coming mortgage originators fulfilling. “I do love when a loan officer who is hungry to grow their business calls for advice, and really listens. I enjoy helping others who are also dedicated to serving their client’s best interests.”

Though the Jaffe Team keeps David busy, he’s learned the importance of balance, and prioritizes time with his family — often through exercising as a family. He’s also dedicated to giving back through charity and philanthropy, with a special place in his heart for organizations that address children’s causes or the needs of those experiencing homelessness and poverty. In his local area, Casa Pacifica and Project Understanding are two of the organizations he’s most proud to support. As far as the future is concerned, David expects to become more involved in coaching others as the years pass and will devote more of his time to philanthropic work. In the meantime, he plans to stay the course, providing one-onone consulting and planning services that make his clients continue to rave about him.

David Jaffe Guaranteed Rate | Westlake Village, CA 805.449.2000 | david@jaffeteam.com | www.jaffeteam.com NMLS 239040 6

Buyer beware — Common pitfalls

to avoid when purchasing a home

Buying a home is not only a large financial investment, it’s also a significant emotional investment. With so much at stake, the process deserves your undivided attention. To ensure that buying a home goes as smoothly as possible, it’s wise to learn from the mistakes of others, and avoid common home buying errors. Here is a list of six common pitfalls to avoid when purchasing a home. Falling for a Home Before Your Finances Are in Order — Nearly all REALTORS® will give you the same advice when it comes to beginning your search for a new home or your first home. That advice will be: make sure you have your mortgage preapproval in place. This will prevent you from falling for a home outside of your budget, thereby safeguarding you from disappointment. It will also save you time, as your REALTOR® will be able to find the greatest selection of homes that meet your needs, within your price range. Attempting to Buy a Home Without a REALTOR® Representing You — Many people do buy homes without the advocacy of a buyer’s agent. However, it’s not recommended for first-time or relatively inexperienced buyers. This is because there are so many moving parts in a real estate transaction, that even small missteps can lead to missing out on the perfect home. Because REALTORS® spend every day immersed in the process of buying and selling homes, they are a veritable treasure trove of information. From knowledge of various neighborhoods, to premium negotiating skills, to advocating for various improvements or concessions, having a reputable buyer’s agent working on your behalf is in your best interest. Buying the Most Expensive Home You Can Afford — There’s something to be said for exercising a little financial restraint when it comes to buying a home. In other words, it’s not necessarily in your best interest to buy a home that totally maxes out your spending power. Instead, consider keeping a bit of money on hand, for things like upgrades, or unplanned expenses such as having to replace a furnace or hot water heater. Copyright Featured Agent Magazine

Buying a Home You Don’t Like — In effort to secure a foothold in the real estate market, many firsttime home buyers purchase homes that they just really don’t like. This should be avoided at all costs. That’s not to say that your first home must be your dream home, but you should find more things you love about it, than things you dislike about it. Buying a home, just because you can, or feel like you need to, can lead to buyer’s remorse and/or resentment. Make sure that you can truly see yourself living in a home, and enjoying it before you make an offer. Purchasing a Home When You Plan to Move Again Soon — Life happens, and there is no way to fully anticipate every possible scenario, such as having to move because your job suddenly transfers you. However, if you know for certain that you’re planning to move within a relatively short period of time, it’s not in your best interest to buy a home, only to live in for a very short time. Doing so can lead to losing money, particularly if the market declines in the short time you’re in the home, or if you’ve purchased with a no money down loan.

Buying Without a Home Inspection — Different states have different laws on housing inspections. However, no matter where you live, you should never miss the opportunity to have a full inspection conducted to confirm the home you’re planning to purchase is foundationally, electrically, and structurally sound. Buying a home without having a full understanding of potential problems is unwise in all cases. Insist upon a home inspection before you buy.

Buying a home should be an exciting experience, not an emotionally or financially exhaustive endeavor. In effort to enjoy the process, it is smart to engage the services and expertise of a licensed real estate agent, who can answer any and all questions you have, negotiate on your behalf, safeguard you from potential delays and missed opportunities, and educate you along the way. With an ally working on your behalf, the process of finding and buying a home can be a lot of fun, and there’s a good chance you’ll make a friend along the way. 7

Managing

client stress

Real estate professionals are responsible for guiding clients through some of the most significant transactions of their lives. And because these transactions involve making huge life changes, coupled with major financial decisions, they’re going to be inherently stressful. But that doesn’t mean they have to be unpleasant. Learning how to manage clients’ stress (along with your own) can help make every aspect of the deal go more smoothly for everyone involved. Try some of these client stress management tips: Stay in the Moment — Clients will cause themselves lots of stress and sleepless nights envisioning all the ‘what if?’ scenarios that could possibly derail the deal. Encourage your buyers and sellers to stay in the moment and make decisions based upon facts you know to be true, not things that may or may not happen.

Focus on the Positive — Buyers and sellers can get caught up in the negative aspects of a deal and talk themselves out of it entirely. Try to keep clients focused on the positive aspects of the deal and work through challenges one at a time, as they come up, rather than waiting and then trying to tackle them all at once. Keep Your Ducks in a Row — Clients will follow your lead, so be sure you’re setting the tone for a relaxed and productive partnership from the start. Stay organized and informed so you can address concerns quickly and never leave a question unanswered. Not keeping clients informed is one of the quickest ways to undermine trust and create unnecessary stress.

Customize Communication — Each client comes with a different set of needs and expectations regarding communication. Some will get stressed out if they don’t hear from you every day — even if there’s nothing significant going on. Others will prefer to hear from you only when there’s noteworthy news to report. Learn each client’s preferred style and communicate accordingly, whether that’s through text messages, email, or good old-fashioned phone calls.

Take Five — When you sense a client’s stress level rising, take a quick break to breathe and regroup; talk about something else for a few minutes. You can also suggest going on a short walk, or stopping to have a quick bite. In fact, steady blood sugar and proper hydration will go a long way toward reducing everyone’s stress level. If you’re heading out for a full day seeing properties, put a small cooler with bottles of water and healthy snacks in your car so everyone (including you) can refresh when needed. 8

Andrea Gordon Copyright Featured Agent Magazine

Andrea Gordon Born and raised in Berkeley, Andrea Gordon’s path to real estate arrived by way of the arts. After completing her undergraduate and graduate studies across New York, France, and California, she went on to run a non-profit theater company for years. There, she reaped a host of accolades and awards for producing and directing for the stage.

Ultimately, Andrea was ready to parlay her creativity toward her next professional path. She cut her teeth in advertising and soon recognized her talent for sales. That’s when real estate presented itself as

a natural next step. During her first month as an agent, she hit the ground running and closed six sales, foreshadowing serious staying power in the industry. In the 21 years since, Andrea has set herself apart as a regional leader, complete with a reputation for client-centric care, market savvy, and a winning track record.

Today, Andrea is in the process of launching her own office under the banner of Compass Real Estate. She covers a diverse range of communities within the Bay Area, including Berkeley, Richmond, El Cerrito, Kensington, Albany, Oakland, San Leandro, and Alameda — with the occasional inroad to San Francisco, as well. With 80% of her business generated by repeat and referral clientele, Andrea has made lasting relationships a centerpiece of her working style. “Whether I’m working with a $250,000 condo or a $2.5 million-dollar home, I treat all my clients the same. Each person is important and a priority,” she says. “I care a lot about the people I work with, and I’m really able to hone in on what it is they want and need. I’m also experienced, knowledgeable, and very creative — which is helpful when I have to be resourceful on behalf of my clients. I make it a point to be transparent with my clients, and they know they can trust me to give them honest advice.”

Beyond Andrea’s passion for the creative and the people she serves, she is also highly respected within her professional sphere. In 2015, she was voted REALTOR® of the Year by the Oakland Berkeley Association of REALTORS,® selected by her peers for her significant contributions to the regional real estate landscape. “When you’re helping someone buy or sell a house, you’re taking part in shaping the community,” Andrea says. “As REALTORS,® we’re meeting people at transitional points in their lives, and being able to help them move on to their next chapter is incredibly rewarding. It’s a wonderful 10

“As REALTORS,® we’re meeting people at transitional points in their lives, and being able to help them move on to their next chapter is incredibly rewarding. It’s a wonderful thing to see someone move into a new neighborhood and put down roots.” thing to see someone move into a new neighborhood and put down roots.”

Much of Andrea’s work as an agent centers on listing properties. Accordingly, she leaves no detail unaccounted for when readying homes for their market debut. High-end professional photography with a creative flair captures homes in their most immersive light, while networking with relevant organizations and publications — from Dwell magazine to the Berkeley Architectural Heritage Foundation — affords listings some nuanced exposure. “I focus a lot of time and energy envisioning what would get the right buyer to that property,” she says. Once homes are primed for their debut, listings are leveraged across the leading online platforms and MLS outlets, netting global visibility. Of course, Andrea also incorporates more traditional messaging, including bus bench signage that has built her local profile and brand for the past 15 years.

free hours, Andrea most enjoys time spent with her husband and loved ones, her rescue animals, and returning to her theater roots to direct the occasional production.

Beyond the office, Andrea gives back to her community both personally and professionally. For six years, she served on the board for the Oakland Berkeley Association of REALTORS® and has served on her local MLS board for the past two years. “It’s important to be involved in things that serve my REALTOR® community,” she says. Andrea also stays true to her love of the arts as an avid benefactor and Artistic Associate for 3Girls Theatre Company. Additionally, she is a devoted supporter of animal rescue organizations. In her remaining Copyright Featured Agent Magazine

“More than anything, I really enjoy the opportunity to help people … At the end of the day, when I’m able to facilitate a major milestone for someone, it provides a real sense of accomplishment.”

As for the future, Andrea intends to stay on her steady course as she opens the doors to her own Berkeley office for Compass Real Estate, which will also feature a gallery as an homage to the thriving local art scene. Andrea is content to expand her team organically and serve her hometown community, one client at a time.

Now, with more than two decades of insight and experience to her name, Andrea Gordon considers what she enjoys most about her chosen field. “More than anything, I really enjoy the opportunity to help people,” she says. “I’m able to be creative and resourceful, and that keeps things exciting. At

the end of the day, when I’m able to facilitate a major milestone for someone, it provides a real sense of accomplishment.”

Andrea Gordon Compass | Berkeley, CA 510.421.6818 | Andrea@AndreaGordon.com | www.AndreaGordon.com 12

FHA, Fannie Mae & Freddie Mac —

The basics of government mortgage loans

When it comes time to buy a home, determining which loan is best for you can feel overwhelming. There are many loan options available, some of which are known as government loans, or government-backed loans. Many buyers take comfort in opting for these types of loans — known as FHA, Fannie Mae, or Freddie Mac loans — as they offer terrific benefits for both firsttime homebuyers and seasoned homebuyers. Here is an overview of what these types of government mortgage loans offer borrowers:

FHA — FHA stands for Federal Housing Authority, and as its name implies, these loans are insured by the U.S. Federal Housing Authority, and are issued by federally qualified lenders. FHA loans appeal to many buyers, particularly first-time homebuyers Copyright Featured Agent Magazine

because they typically offer less stringent qualification requirements, and often allow borrowers to make a smaller down payment.

For example, FHA loans may be available to homebuyers with less than perfect credit. In fact, many people can secure FHA loans as long as their credit score is above 500. However, the down payments required for an FHA loan are contingent upon credit scores. Borrowers with a credit score of 500-579 will need at least 10% down in order to obtain the loan. Buyers with a credit score of 580 or more may be eligible for down payments as low as 3.5%. Other benefits afforded by FHA loans include allowing borrowers to use down payment assistant programs, or

When selecting a mortgage loan, it is smart to engage the services of a trusted, reputable mortgage professional. That way, you’ll be able to discuss all options available to you for a home purchase or a refinance loan, so you can make the best decision for you and your family.

to use money received as a gift from a family member as a down payment. Grants may also be used to cover a down payment. FHA is also open to allowing the builder, seller, or lender to pay for part of your closing costs, which include things like appraisals, credit reports, or title expenses.

It’s important to note that FHA loans are not obtained directly through the Housing Authority. They are the insurer, not the lender, so an FHA loan will need to be obtained through a qualified lender. In addition, it’s important to note that the costs and services charged by brokers, banks, or credit unions will vary, so it may be in your best interest to shop around before signing any paperwork.

Fannie Mae — Fannie Mae is the familiar name for the Federal National Mortgage Association (FNMA). Fannie Mae is a government-owned business, which was created to enhance the country’s housing market, by purchasing mortgages from retail banks. This helps banks to loan more money, giving greater numbers of people the opportunity to purchase a home. The goal of Fannie Mae is to make housing more affordable for everyone. As such, Fannie Mae offers several assistance programs for first-time homebuyers, and for those needing down payment assistance.

Fannie Mae loans are only available for conforming loans, and there are certain requirements that must be met to obtain approval. In general, Fannie Mae loans will require that your debt-to-income ratio be below 36%, unless you have a high credit score and proof of financial reserves. Credit requirements for Fannie Mae loans are stricter than FHA loans. Buyers need 14

a credit score of at least 620 to qualify for a fixed rate mortgage, while adjustable rate mortgages will require a credit score of 640. As a huge benefit though, first-time homebuyers with good credit who meet all other Fannie Mae requirements may be able to obtain a loan with a down payment requirement of just 3%.

Freddie Mac — Freddie Mac is the familiar name for the Federal Home Loan Mortgage Corporation (FHLMC). Like Fannie Mae, Freddie Mac is a government-owned corporation which buys mortgages, so banks and other lending companies don’t have to bear the burden of keeping 30-year loans on their books. Overall, Freddie Mac exists to help keep mortgage interest rates low, which serves as an incentive for first-time or experienced homebuyers to buy homes.

The requirements borrowers must meet to be approved for a Freddie Mac loan are very similar to the requirements of a Fannie Mae loan. That is, there is great emphasis on a borrower’s debt-to-income ratio, and a minimum score of 620 is typically required. The main difference between these two governmentowned corporations lies in which banks each agency buys loans from. Fannie Mae buys mortgages from retail banks, whereas Freddie Mac buys mortgages from smaller banks.

featuredagent Chris Schoenthal magazine

Chris Schoenthal, Mortgage Loan Originator with Homebridge Financial Services decided to enter the mortgage industry in Georgia at the same time most others were leaving. But the risk was worth the reward, and in fact, Chris says that his success today — as one of the nation’s top 1% of loan officers, facilitating more than $56 million in financing in 2018 — is because he entered the industry during such a challenging time.

Indeed, Chris missed the big boom in the real estate markets, and instead began originating in Georgia as markets were beginning to crash in 2006. A recent transplant from Tennessee, where he’d earned his degree in finance, Chris didn’t know many people when he chose to work in mortgage lending. “I never had time to sit around and wait for loans to come to me. I knocked on doors, I went after For Sale by Owners, I did $60K short sales and $50K foreclosures, and I helped REALTORS® print flyers,” Chris explains. “Whatever builders, buyers, or REALTORS® needed, I did. I wasn’t above helping in any way, and I was there for them. It was a little bit of addition by subtraction because there were so many lenders leaving the business.”

His willingness to do whatever he could to help others, along with his reliability and relentless work ethic, laid the foundation for incredible partnerships. “I was there through the tough times. I helped close the hard deals for builders,” Chris says. Thus, when the markets improved, his business surged. But even as his star rose, Chris refused to change who he is, or how he works.

“I’m not a prototypical sales guy. I haven’t forgotten my roots, I don’t drive a fancy car. I show up at my

appointments in my truck,” he explains. “I’m kind of a blue-collar loan officer. My dad was in middle management and taught me to be detail oriented and to work hard, and I do.”

“I answer my phone, stand by my clients and my partners’ sides, and I do my pipeline calls every day. I know the status of every file because I’m truly dedicated to the success of my partners,” Chris says. “Some people are blessed with the ability to dance, sing, or draw. God gave me a good memory,” he quips. This attention to detail also means that when his partners call with questions, Chris is ready with the answer.

Chris has a partner and a team of assistants and processors supporting their team, which is necessary given the volume of loans he closes each year, while simultaneously managing two Homebridge branches. But he wouldn’t have it any other way, as he loves watching younger loan officers learn the ropes and grow their own businesses. “I love training, and I love seeing others succeed,” he says.

Chris’s dedication to helping others expands beyond his builder and REALTOR® partners, colleagues, and those he mentors. As father to three young boys, he’s committed to helping others — including those he has never met — as a way of life.

“My brother battled cancer repeatedly, and ultimately passed away,” Chris says. “We decided to help other folks and honor his legacy through forming a 501 (c)(3).” The Scott Schoenthal Circle of Love reflects Chris’s love for his late brother, along with his love for helping others with housing. “We help those with cancer to pay their rent, their mortgage, their homeowners’ insurance — whatever they need — throughout the year. In December 2018, we were able to pay the rent or the mortgage of 16 individuals battling cancer. It is my family’s passion, and a true honor to be able to help.”

As he looks towards the future, Chris intends to stay the course by continuing to serve his partners and clients as a preferred lender, with care and dedication.

Chris Schoenthal Branch Manager, Mortgage Loan Originator | Homebridge Financial Services | Lawrenceville, GA 770.685.6633 | cschoenthal@homebridge.com | www.homebridge.com NMLS 270228 Copyright Featured Agent Magazine

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