The Four E's of Real Estate Success: Effort, Expertise, Ethics & Enthusiasm

Times are tough for many of us in the real estate biz. It’s amazing to see how the current state of affairs lies in stark contrast to what real estate was like just a year or two ago. At that time, so many people were making money in real estate that the opportunity seemed endless. The industry was bursting at the seams with new brokers who--just a few months before--were mortgage and insurance brokers and sales people in other industries. It was as if everyone from lawyers to their personal assistants was jumping on the real estate bandwagon.

And now look where we are. Markets are slowing down, homeowners are foreclosing on their homes, and the media puts a gloomy spin on all things real estate. And just like in real estate slumps in the late 70’s and during the mid-90’s, adverse market conditions will select the strongest professionals. It’s Darwinian real estate, or survival of the fittest broker or agent.

I already hear about it from colleagues. They share how many are dropping out of the business and filling out job applications in other industries. For those of us who’ve experienced a slump…or two, we come to accept the cyclical nature of the business. One tough period that stands out took place after the World Trade Center collapsed. Along LA’s Westside, real estate was at a standstill. As easy as it was to panic and want to give up, we stuck it through only to be a part of the real estate boom that took place soon after.

Despite adverse market conditions, I’m still convinced that success in this business is possible for anyone who is willing to put in the long hours. Unless you work in an area that people can’t wait to get out of, there is still money to be made in our industry.

When I first started, I spent countless time on the phone, consumed hours researching my community, and worked tirelessly to expand my contact list. Unfortunately, I wasted a lot of time because I navigated my way through trial and error.

Over the next few weeks, I’ll share about the Four E’s of Success: Effort, Expertise, Ethics, & Enthusiasm. They form the foundation of my business and are the driving force behind my success. This week, the first part of “E” Number 1: Effort.

“E” Number 1: Effort

There is one guiding principal that you must learn to accept: Every sale will have a glitch. Whether it’s a bad inspection or an unreasonable broker on the other end of the deal, you must be prepared to adjust to obstacles that arise. Too many in this industry give up when success is around the corner. They let negative thoughts interfere with closing the deal.

Your flexibility will allow you to see a solution to every problem rather than view setbacks as insurmountable deal-breakers. When approached by positive thinking, you’ll realize that the challenges you face are simply part of the transaction process.

In addition, you have to be prepared to work through the ups and downs of the real estate market. For instance, when the market is hot, the deals seem to fall into your lap out of nowhere. This is what the industry looked like for the past few years.

Newly licensed brokers believed that the opportunities were endless. They enjoyed their work immensely. That’s great. But now that the market is slowing down throughout the US, it’s harder to maintain a positive outlook.

During a slow period, your listings are on the MLS longer than you believe you can bear. Your clients are frustrated because no one is interested in their home, and they are afraid of losing money on the sale. Your phone isn’t ringing, and bad news about real estate seems to appear everywhere you look. It’s these difficult times that separate the agents who viewed real estate as a fast way to earn money from those who have long-term career plans.

After you’ve been in the business a few years, you’ll understand why adversity is your friend. When you work harder, push yourself, and dig deeper to find gold, you learn more about the business.

In the beginning, I used to feel anxious when I considered how many other brokers I was competing against. But not anymore. When the real estate market is strong, everyone from the attorney to his accountant is an agent. If you wait long enough, however, you’ll see those same professionals, who became top producers as a result of a couple of deals they did almost nothing to get, drop out of the business once the market takes a dive.

As tough as it can be during a dry spell, you’ve got to continually believe that things will turn around. I call it the Malibu Effect. The coastal town, 90265, is one of the most desirable places and expensive places to live in the world, and also one of the most treacherous. People across the world dream to live there, while current residents have an unrivaled loyalty and pride for their community. Next time, I’ll share more about the Malibu Effect and how it speaks to the current state of real estate.

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My Mother, Yetta Krul, Passed Away On Sunday

If you ask me what I came to do in this world, I, an artist, I will answer you: “I am here to live out loud.” –-Emile Zola

Befitting the glamour and beauty of Oscar night, at 8:00 p.m. on Sunday, February 24, Yetta Krul, my mother passed away. She had interminable courage that sustained her until her last moments with us. In her final days, her doctors were amazed at her strength, but their astonishment was no surprise to me. She was a survivor of the Nazi prison camps, and her determination to endure and thrive despite extraordinary circumstances is the legacy she has left my children, grandchildren, and me.

My mom was an artist. Her skill was how she could turn the mundane into the magical. Through her artistry, she’d transform mediocre apparel into high fashion, simple window coverings into baroque drapes, and her mastery in the kitchen meant that there was no such thing as a modest meal. Her cooking and baking were rivaled only by her sense of style. The holidays were a fantasy of centuries old traditions rooted in her Polish heritage combined with the limitless possibilities of the American spirit.

If her wisdom and experiences were ink, they’d swell the pages of a multi-volume tome. But, as is the case of many holocaust survivors, her deepest memories were embedded beneath layers too painful to express and too harrowing to revisit through words and thoughts. Sadly, history is lost every time a victim of the Holocaust passes.

I’m honored to have recorded a small part of her elegant life in my book. And I’m so thankful for the support that Saeed, my family, and I have received. Your thoughts and prayers mean so much to us during this difficult time.

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Diamond Doctor Hosts My First Book Signing

On Sunday, February 24th, TV’s across the globe will be tuned in to the Oscars. While celebrities vie for Hollywood’s top honor, the highlight for most fans will be the haute creations that don Hollywood’s elite. The Super Bowl for fashion lovers is what some have called the event. In fact, I’m sure that most viewers would forgo the accolades and would instead replace the show with extended red carpet coverage.

What will adorn the actresses against the dizzying flashes of paparazzi? If past award’s shows are any indicator, Martin Katz’s jewelry will be the bling of choice. The red carpet will glisten with his signature style as bejeweled necks, wrists, earlobes, and manicured digits strut into the Kodak Theatre.

My friend, Martin Katz, will host my first book signing at his exclusive Beverly Hills boutique in April. Called the “Jeweler to the Stars” and the “Diamond Doctor” Martin’s clients include Kate Winslet, Salma Hayek, and Anjelica Huston among other Hollywood A-listers. I’m delighted to celebrate this event in one of the country’s most prestigious destinations for vintage and contemporary jewelry. Stay tuned for more details.

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My Vegas Weekend

These past few weeks, the work pace has been intense—some days it’s a scramble to accomplish all of my tasks. I just picked up two new listings: one in Hancock Park listed at $8.95 million and another in Brentwood selling for $10.25 million. In addition, I closed a deal on Evans Road in Pacific Palisades.

My book has made my already intense schedule even more difficult to maintain. That’s why I couldn’t wait to take a short break from the hectic workday and spend a couple of days with my husband, Saeed, in Las Vegas over the President’s Day weekend. Trips like these are an important respite from the fast paced life of a Beverly Hills broker.

We stayed in the Wynn Hotel and ate an magnificent meal at celebrated chef, Daniel Boulud's brasserie, home of the $32 hamburger. The chef, entrepreneur, and cookbook author's has restaurants in New York, Palm Beach, and Las Vegas. At Boulud’s brasserie, I opted out of the famous burger, and instead dined on the roasted beet salad, pumpkin soup, and for my main entrée I ordered the braised short ribs—exquisite. The ribs are one of his signature dishes and they are worthy of all the hype. Click here his short rib recipe. What made the meal particularly memorable was the water show that we watched while we dined on the famous chef’s concoctions.

The Wynn is also where Saeed and I saw La Reve, the show by Franco Dragone, Cirque du Soleil’s former creative director. The Wynn’s theatre is circular, which means that everyone gets a fantastic seat. In the middle of the performance space is a pool that holds 1 million gallons of water. The production is an incredible feat of art, athleticism, and engineering. It’s raised the bar on acrobatic shows that Cirque du Soleil made famous.

Vegas is definitely a place for those who are passionate shoppers. All the major players in global fashion are represented, as well as fabulous jewelers and furriers. I made a stop at Jimmy Choo’s boutique, which is always an exercise in personal restraint. His couture shoes are irresistible. Since many of the indoor shopping centers are connected, you can spend the entire day without seeing daylight. Just travel from mall to mall through a maze of pedestrian tunnels.

I’m no gambler, so I’ve always enjoyed Las Vegas for its shows and glamorous side. As the city’s boutiques and retail stores grow to house the biggest names in global retail, I see one unfortunate consequence of its massive appeal. A casual thread runs throughout the city that takes away from its sophistication. Dressing down is by no means limited to Vegas—I see it everywhere. But witnessing it there was particularly disheartening. The Las Vegas that I hold dear to my heart has casinos filled with couples donning elegant formal wear. Instead I saw flip-flops--lots of them--and torn jeans, which make it seem less Monaco and more Morongo.

It’s always refreshing to get away, even for just a weekend. The trip provided me the space to recharge my batteries and return to work with clarity and focus. Throughout my years as a mother and real estate broker, I’ve always had a vision of where I was headed. When I was at home with my kids, I added to my maternal duties by creating custom-made apparel for children in the community, dance troupes, and gymnastics teams.

Once I became a broker, I worked tirelessly to build my client base. Always planning ahead gave me consistent results and has guided my path. My advice to you: instead of moving whichever way the wind blows, continue to create opportunity by tirelessly completing the small steps necessary to accomplish bigger goals.

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Your Feedback Please

According to the Google analytics figures, my blog readership continues to climb. Unfortunately, I haven't been able to hear from you do to problems accessing comments posted on my blog. I think the problem has been solved (the proof will be when I'm able to read your thoughts.)

So comment away!

I look forward to hearing from you. And please accept my apologies for your words that were lost in cyberspace. They didn't find their way to me, and I hope you'll try again.

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Real Estate Tips Your Mom Would Be Proud Of

I love children. My kids—Nicole, Howard, and Michael—are the three biggest blessings in my life. They were the reason that I was a stay-at-home mom for so many years before launching my real estate career. And with the addition of my two grandchildren, Joshua and Eva, I once again have little ones running around the house. If I had to sum up in one word what being a mother and grandmother has taught me, it would be PATIENCE.

Raising three children taught me countless lessons that I still bring to my real estate practice today. I know how to treat my clients who are parents of little ones. As a mother myself, I understand how distracting children can be. They run around, they want your attention, they get cranky, and the list goes on.

Children, the love of our lives, can make the home search a challenging endeavor. Imagine a mother who is responsible for making one of the family’s most important financial decisions—buying a home. I’m driving her from listing to listing, where she has to remain focused on her search. It’s easy to lose concentration when her son is tired, hungry, and just wants to go home.

Here are two easy solutions to keeping children occupied, which frees up your client’s attention as she finds her home.

Tip #1 Keep Them Busy

Have coloring books and crayons with you. For older kids you can provide crossword puzzles (sudoku, an import from Japan, is really popular now) or markers and the more sophisticated coloring books like Dazzling Designs by Koichi Sato, which are appropriate for kids up to 12 years old. I’ve seen teenagers spend lots of time carefully coloring in the intricate geometric shapes during long flights.

Tip #2 Keep them Full

For kids—and adults too—it’s tough to be well behaved on an empty stomach. So have snacks for them, and don’t forget their parents too. Carry bottled water, crackers, cheese, and fruit with you. Once you offer these to your clients' children, you’ve won both of them over. Parents have good memories when it comes to people who have acted kindly toward their children.

It warms my heart when my clients’ children see me and ask something like, “Hi Myra, do you have any treats for me?” As you can imagine, many of these kids have every type of toy and food under the sun. But they still look forward to receiving a simple surprise. Once we arrive at the listing, the children are already occupied with a coloring book or some crackers, and their parents are able to focus on finding their home.

These simple steps will soothe a temperamental child—maybe even prevent a tantrum, occupy a bored one, and feed a hungry one. All of which allow their parents to concentrate on the listing. And as a result of your generosity and consideration, you’ve left a lasting impression.

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Good Brokers are Good Teachers

As a successful real estate broker, your job is to educate your clients. Not only are you teaching them about the service you provide, but you’re also giving them information that will help them make the best decision.

For example, I had a client who determined that he wanted to spend $6 million on his next home. Steve wanted to live in Holmby Hills , which along with Beverly Hills and Air form LA's "Platinum Triangle." The area is home to Hugh Heffner's Playboy mansion and Aaron Spelling's former 123 bedroom, 56,000 square foot residence.

My client was looking for a big lot with a view of the city. Based on my knowledge of the area, I determined that $6 million would not buy a home that met his specifications.

When I shared this information with him, he became obstinate. “My wife and I refuse to spend a penny more than $6 million,” I recall him telling me. Although I knew this wouldn’t be possible, based on current market conditions where he wanted to buy, I realized that he needed to see this for himself.

I suggested that we spend the afternoon looking at homes in Holmby Hills. We met, and I drove him to several properties that I had sold in the neighborhood. Many of the listings were similar to what he was looking for, but all were valued at more than $6 million. After seeing the properties, I invited him to my home where we could discuss what we had observed that day.

Before I left for work that morning, I prepared a plate of fresh fruit, as I knew that my client and I would de-brief afterwards back at my home. We sat in my living room, and I listened to him reflect on the day’s events.

“$6 million was my absolute spending limit, but after you showed me around today, I realize that I need to reconsider,” he told me. He later thanked me for educating him about the neighborhood and providing him with the information he needed to change his plans. In the end, he recognized he would have to either spend more than he had initially planned or rethink the kind of property he wanted to purchase.

This example illustrates that as a broker, your job is to provide your clients with information that will allow them to make the best possible choice. To do this successfully, you have to be aware of their needs. This means that you express your opinions in a way that shows that they are your Number 1 priority and that you value their time.

In the case of the client I just described, what convinced him to think twice about his plans was my knowledge of the area where he sought to live. In order for you to earn your clients’ respect, and for them to trust your opinion, you must have extensive knowledge of the community you serve.

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