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Business Bros – Episode 49 – White Board & Visual Accountability (HCCA) Part 2

Published in Business, Business Bros, Business Bros Podcast

One of the main reasons why you do not pay your self first, reach your financial goals or ever put money away for a rainy day is because you have no external accountability. Being held accountable is why you pay any of your bills at all. There is a negative result if you fail to pay your bills and avoiding that pain is why you make is happen month in and month out. In today’s podcast we go over an example of the 5 white boards that all Top Producing Real Estate agents use to hold themselves accountable to the dollar productive activities on a daily basis. To get more info and you free coaching call go to our website www.SiasFirst.com and click on the Free Coaching Call tab. You will get your 6 free books and be well on your way to improving your Real Estate business and becoming a Top Producer yourself. Join the conversation on Facebook @SiasFirst or on Twitter @BusinessBrosPod. Music by www.bensound.com

Courtesy of Tim & Julie Harris Real Estate Coaching

  1. We have never met, interviewed or coached a single top producing agent that does not use some sort of visual accountability system.
  2. What you will need, 5 individual white boards 18×24 or 1 dedicated whiteboard wall, Not too thick whiteboard markers (colorful), Whiteboard cleaner.
  3. Why it works: External Accountability. Have you ever noticed, virtually every month you are able to cover your monthly basic overhead one way or another? Sure sometimes your late on a bill or two but by and large you figure out how to make enough money in Real Estate to cover your bases. You receive an email alert, paper bill in the mail, you are reminded that you are accountable for these items. Rent or mortgage payment, car, credit card, cell phone… If you don’t pay these obligations in time there is an immediate negative effect. Don’t pay your cell phone, no service. Don’t pay credit card, no credit. Don’t pay your car payment, repossession. SECRET: Most agents know exactly how much they need to “get by” and strangely, that’s almost EXACTLY how much they are earning.
  4. Exercise:  Figure out your required overhead. How much do you have to make to avoid some sort of pain? What is that dollar amount?
    1. In California on average its about $6500 per month
    2. Average home in CA sells for around $500,000 at 3% with a 65% agent split that is about $9,750 per closing
    3. That means in CA you need 8 closings per year to pay the bills and surprise surprise, according to the National Association of Realtors, most agents sell less than 12 properties per year. So why is it then, that it’s so hard to accomplish the financial goals that you set each and every year? Pay off consumer debt like credit cards or high interest loans. Save money on reserves. Pay cash for things like cars and clothes. Take the vacation you plan but never take because you don’t want to charge it on a credit card. Put the kids in private school after taking them out during the last recession. Be able to afford the luxuries you deserve as a result of your hard work. 
    4. SECRET: It’s hard because no one is BILLING YOU FOR THESE THINGS! What would you do if you have a bill that came in every month for $1000 that was called “Mandatory Savings, please remit immediately”. Chances are you would take it more seriously and figure out a way to pay that bill too just like you pay all the other bills that have accountability attached.
  5. What does this have to do with whiteboards. SECRET: Your financial goals in life are related directly to the consistent flow of leads, listings and closings you can create on almost a DAILY basis. Lack of external accountability works against you.
    1. What if you don’t take a new listing this week? Nothing happens immediately but 60 days from now, when you don’t have a closing, you’re feeling it and wondering what happen.
    2. What if you don’t reduce that overpriced listing of yours? Ah, it’ll sell eventually. Unless it doesn’t, because you weren’t focused on getting it sold with urgency.
    3. What if you don’t call back that lead in your voicemail? Eh, they’ll call you back if they’re serious.
    4. All of those though patterns create CASH SPURTS. Spurts in motivation and spurts of occasional action results in spurts of income. SECRET: VISUAL ACCOUNTABILITY, surrounding your everyday, makes you take action faster and more consistently and eliminates this thought: “I’m getting ready to someday feel like possibly taking action if the sun is out and I’m broke enough to feel pressured to get to work”. (How profitable is THAT?!) SECRET: All top producers utilize the magic of Visual Accountability. Now that you’re convinced you have to do this, How do you set them up?
  6. 5 White boards or 5 sections on your wall.
    1. Each board gets the following: LEADS, ACTIVE LISTINGS, ACTIVE BUYERS, PENDINGS, CLOSED TRANSACTIONS.
    2. Use one color for buyers and one color for sellers and if you are doing both sides of the deal you can write them up twice. Once for buyer and once for seller.
    3. Keep boards up to date DAILY.
    4. LEADS: Write 1-15 on the left hand side of the Leads board. You’ll need at least 15 active leads at all times (some mixtures of buyers and sellers). Across the top of the LEADS board write the following:
      1. NAME / SOURCE / MOTIVATION / TIME FRAME / PRICE RANGE / NEXT ACTION.
      2. Example: Bob Smith / sign call / 1st time buyer / buy before holidays / up to $280k / call on friday to check financing
    5. ACTIVE LISTINGS: Write on the left hand side the number of active listings you must have at all times according to the Real Estate Treasure Map, which is found on the website as part of the Premier Coaching Program.
      1. Let’s say you have to have 10 listings at all times. Write 1-10 on the left hand side of the listing board.
      2. NOTE: Only Active, non-pending listings go here. If they are in contract in any way, they go on your pending board instead!
      3. ADDRESS / SELLER / SOURCE / CURRENT PRICE / SELL-ME-NOW PRICE / EXPIRATION DATE
      4. Example: 123 Hot Listing St / Smiths / referral / $350k / $325k / Dec 31
      5. This holds you accountable to getting it sold on time and reminds you that 10 showings or 2 weeks (NAR rule), then you need to take a look at the price.
    6. ACTIVE BUYERS: Write a minimum of 3 active buyers at all times (Harris Real Estate Coaching Rule). Every agent, no matter how experienced or inexperienced must be working with 3 active buyers at all times. Some of you may be buyer heavy and can work with 5-8 buyers who are pre-approved, motivated buyers at all times. Write your number on the left side. Across the top:
      1. NAME / SOURCE / MOTIVATION / TIME FRAME / PREAPPROVED / NEXT ACTION
      2. Example: Greg Thomas / Open House / Move-Up / Before Easter / BofA Pre-Approved
    7. PENDING BOARD: Write across the top
      1. NAME / SOURCE / ADDRESS / CLOSING DATE / PRICE
      2. Example: Jones / 1800HH / 123 Sold It / March 31 / $515K
    8. CLOSED DEAL BOARD: This is the most important board of all. This is where the truth comes out. Based on your Treasure Map, write down the number of closings that you need to meet or exceed all of your goals. 1-32 will work for most of you.  Across the top:
      1. ADDRESS / SOURCE / CLOSED DATE / DAYS ON MARKET / COMMISSION
      2. Example: 456 Awesome Client / USAA Relo / July 31 / $4750
  7. Secrets to making sure this works
    1. Trust the system. Don’t re-invent the wheel. All you need to know is that every top producer before you has used whiteboards and they work like magic.
    2. Keep them updated. They are the VITAL STATISTICS of your real estate business. Take them seriously
    3. Use one color for buyers and one color for sellers.
    4. At the end of the year your whole real estate practice will be reflected on the CLOSED board. At a glance you will see number of buyers, sellers, average days on the market, average net commission, average sales price and the source of your deals.
    5. Forget about your spreadsheets. They are out of sight, out of mind. White boards work… did we mention they are magic?
    6. Set this up TODAY. Maintain it every day.

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