.jpg)
REality
Welcome to the REality podcast--the best podcast for real estate agents. Join us each episode as we talk with industry experts and top producing real estate agents to peel back the curtain and reveal what it takes to make it in today's ultra competitive real estate business. This is real life, in real time, sharing real experiences of industry professionals to help both new and seasoned agents achieve their goals and realize their potential. Are you ready to take your real estate business to the next level? Let's get started now. Sign up for Gary's weekly FOCUS newsletter, delivered right to your inbox each Monday morning: https://mailchi.mp/e3771e6a2516/focus-email
REality
Thriving in the Real Estate Market: Hard Optimism, Gratitude, and Staying Connected with Pat Riley
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
Discover the secret to thriving in the ever-changing real estate market with our special guest, Pat Riley, President and CEO of Allentate Realtors. With over 35 years of industry experience, Pat shares invaluable insights on cultivating hard optimism and a solid game plan for gaining clients and listings. You won't want to miss his thoughts on how to develop and nurture this essential mindset for success in both business and life.
In this episode, we take a deep dive into the challenges and opportunities in the current real estate landscape, from navigating the financial crisis to the effects of interest rate lock and inflation on the housing market. Pat enlightens us with his wisdom on the E+R=O (Event + Response = Outcome) concept and how a positive mindset, gratitude, and consistent strategies can lead to success. We also explore the unique challenges posed by Boomers aging in place and how coaching and counseling can make a difference.
Finally, Pat emphasizes the importance of staying connected with homeowners and shares valuable advice on avoiding pitfalls when it comes to remodeling, refinancing, and assessing a home. We discuss the need for an annual insurance physical and the value of a good CRM system to stay in touch with clients. Wrap up the episode with Pat's inspiring takeaways on gratitude, education, and communication that can truly make a difference in the lives of the people we serve in the real estate industry.
Hard Optimism in Real Estate Market
Speaker 1The real estate market influx . how do you remain on top of your game ? The recipe for success in this market is a good mix of healthy optimism followed by a solid plan for gaining leads and getting more listings , all while continuing to nurture your sphere consistently . And here today to give you the motivation you need to be successful is our special guest , allentate President and CEO , pat Riley . You won't want to miss this inspiring episode .
Speaker 1This is the reality podcast , and I'm your host , gary Scott . with more than 35 years of experience in the real estate industry , working in 10 major markets from New Jersey to South Carolina and now as the president of the largest real estate company in the Carolinas , allentate Realtors , i know what it takes to be successful in this business . This is real life in real time , sharing real experiences of industry professionals to help both new and seasoned agents achieve their goals and realize their maximum potential . Allentate Realtors is a proud partner of Howard Hannah Real Estate Services , the largest independent , family owned real estate company in the country , with more than 13,000 sales associates and staff members across the combined companies . you'll have the opportunity to hear from the absolute best in the business . Join me each episode as we unpack the reality behind what it takes to make it in this great business .
Speaker 1Welcome to reality podcast . I'm your host , gary Scott , and today we have an amazing show for you Pat Riley , president and CEO of the Allentate companies . Pat not only one of the great leaders in our industry and in the communities in which he's lived and worked got into the real estate business in 1972 , but , most importantly , pat is a great friend of mine and a mentor of mine . I know that many of our listeners have enjoyed Pat's messages over the years , but we're in such a great time in our business as 2023 gets into month number five , which is hard to believe , but we're excited on reality podcast today to have Pat Riley . So , pat , i say good morning because we're recording it in the morning . We don't know when our listeners are going to listen to it . So good morning , my friend .
Speaker 2It's a beautiful day in the Carolinas , for sure .
Speaker 1It is a beautiful day in the Carolinas . both he and I we're in offices next to each other but we can't see each other except on a video And as we look out our windows it is Carolina blue sky without a cloud . But we're excited today to talk about the real estate business And we're going to get to the economics Pat . but so important for our listeners is mindset . I know you're passionate about that . Yesterday we happened to be in a meeting and we were talking about what are the keys to success , whether you're a leader and whether you're a real estate professional , whether you run a team , whether you're brand new , whether you've been in it 30 years , and that's passion . And so you have gone around over the last couple of months and had this topic that is just resonated called hard optimism . Why don't you share with our listeners kind of what that means ?
Speaker 2I think , gary , first of all , thank you for the invitation to come back . We , as realtors , committed this profession to be coaches and counselors with someone's greatest asset on this earth . We don't get enough credit as realtors for being in that position . So , in a time of change , in a time of market normalization , passion and zeal need to radiate from us as leaders through a changing marketplace . 2021 , as you've talked , we'll probably go down in history . We're just normalizing , and this normalizing is taking place at also at a time when our consumers out there are suffering from paralysis of the analysis . They're sitting tight .
Speaker 2I just came from the dentist office this morning and two people my dental hygienist and the dentist said man , my dreams are on hold . One was on the younger end , one was on the boomer end . My dreams are on hold . They're suffering from paralysis of the analysis and adjusting with interest rates which we're getting used to , adjusting to boomers not downsizing the way they used to , that inventory not coming on . And boy , they need a counselor . Renters need us to get in that first home and talk about sweat equity . They need us . But when they do need us , we need to be there with passion and zeal and optimism . There's so much negativity out there right now We have to come through with optimism And we don't have the answer . We have to say why don't we have the answer .
Speaker 2So I read this book , heart Optimism by Price Pritchett , and the only reason I read it was because he signed it and sent it to me and said he heard me one time speak and thought I would enjoy it . Boy , it was his scientific . So I don't recommend reading . I'll give you the cliff notes . But it was eye-opening because I always thought , gary , that optimism was a born trait And , coming from a parent , one end a complete end of optimism and a parent complete end of pessimism . I figured I was 60% for life , no matter what I did . But by the time I got through and five or six things came to fruition , the light went on . We can move the needle on optimism . We can We talk about . Who do we like to be around ? optimistic people ? Who do we like to work with ? Who gets elected ? Who makes more money ? Who lives longer ? Why wouldn't we all want to move that needle ? if we thought we could . Some ideas on that were like duh , but when we got through it I stepped away from it and said yes , we can move the needle And I will say this that 50% is genes , 25% is learned , so the older we get , the harder it is to make change . And then the other 25% is absolutely unequivably moving the needle . So it starts with it's easy , it's easy , but it's really hard .
Speaker 2Identifying 50,000 thoughts a day , identifying a negative thought that comes in , because that gray mass in between our ears is doing about 50,000 thoughts a day and it's how we handle those thoughts . So first thing is to identify this is negative . Second thing is can I control it ? Boy , oh boy .
Speaker 2Remember Barbara Seal , gary , she spoke . She rode across that ocean with her , with her mate , in a race , and eight miles forward , 10 miles back , storms , sharks and her husband left her . And one of the greatest things we learned from that talk was control the controls . That's what got her through . She could have been a month and a half later , still had a little audience there cheer her on . But control the control rules .
Speaker 2I can't control what others think about me . I can't control what they say about me . I can't control what happens around me . We have one vote in the election process , which so many people are wrapped up in political issues right now and they're stymied by it . So first of all is can I control it ? If not , let it go .
Speaker 2The second thing is how bad ? even if it's bad , even if I can't control it , it's temporary . It's temporary Even something really bad like a loss of a loved one . It's not forever , it's temporary . Okay , yes , it's forever the death , but it's temporary . And then we move on to just simple things that we all know . But we have to look at opportunities , not obstacles .
Speaker 2Many times pessimism comes from not preparing enough . Many times it comes from self-actualization that oh , i'm not going to get this listing , i'm up against so-and-so . Geez , oh man , i've had self-thought many times . When it's negative , we have to say , oh , i can't control this or I can't . Bottom line is the younger we are , the easier Females have many more mood swings than the guys , but guys are more pessimistic than females . Winning the lottery does not determine our emotional fortune . It never has . Along with the loss of a loved one , the invisible fortune teller in most times is self-fulfilling . It's self-fulfilling When you look at the words we use , and I've been on my trail right now telling a story . Just three words . Okay , it's the words that we use with others and it's also the words used to us . And boy , it gets real near and dear when you talk about your families and your friends and your associates and your clients .
Speaker 2I played football and there was a play called the Lamb at Six Play . It was the best play for a tight end . Oh boy , you blocked down on the tackle , double teamed The quarterback , came over and faked into the fullback , halfback into the line , off tackle play . And then all of a sudden you count to six and sprint to the sideline as a tight end and maybe have a step or two on the linebacker . Well , pat , with these small hands , cold weather , no gloves that they have today as I ran . Well , the coach would come in with a play In those days there was no hearing cameras or audio Running back would run in and say , wham at Six . Coach says Riley , don't drop it . Don't drop it , there's three words . I always think since that time , what if it came in and said Riley , wham at Six Pass , look it in , look it in Three words . Do you see ?
Speaker 2these words that we use and the words that are used around us are so important . On optimism , and I wrap up with saying complaints , don't condemn , criticize or complain without a solution . Don't condemn , criticize or complain without a solution . You know , hope is a muscle . The brain needs to be exercised in a positive way . It starts with , in the morning , gratitudes , which COVID taught us a lot about that . Have we carried that forward and counted that gratitude , a big one ? for positivity is forgiveness , which is hard for us as human beings . Forgiveness is key .
Speaker 2Now I leave you with the last one . That he talked about is we all wake up every day with a list of things to do , personal and professional , and we go to bed many times disappointed in ourselves because we didn't get the list done . Well , folks on this call podcast , we're not going to ever get it all done . If we're honest , we're not . So what he stressed was have your list of 20 , have your list of whatever , but bottom line has a five on there , the most important things that we need to do today . And make sure that night you pat yourself on the back before you go to bed and said you know what I accomplished , what I had to do . That's , that's my optimist message . It's a long book , it's a scientific book , but that's the cliff notes . The big thing take away is we can move the needle , no matter what age , no matter what gender we are .
Speaker 1You know , pat , first of all , thank you for that . I think it is so important And you know the reason to our listeners why we started today . You know Pat's been in the real estate business since 1972 , multiple states , and you know I think we started today with your book report , if you will , your analysis of heart . Optimism because in today's marketplace we can understand interest rates and inflation and what the Fed does or doesn't do . But you said it best , we can't control that . You know . I say , like you do at sales meetings , is don't spend time worrying about the interest rate at this number , because you know you're not going to call Powell and impact it , but what you can do is say here's what the rate is . And so a couple of things resonate with me .
Real Estate Challenges and Opportunities
Speaker 1I think back , pat , to another time in our careers together , back in seven and eight , when the financial crisis and I share with people all the time , as you and I were in business here in Charlotte , north Carolina , that in seven we were totally guilty of hope and optimism . You and I were . You know , we believe that while this crisis was happening , that we were going to be insulated , because we just believe that Carolinas and we had the big banks and I tell that story often that you know , if guilty of hope and optimism is kind of the worst thing that we were that day , then we're probably going to be OK Now . Once we woke up and realized that hope and optimism had to be replaced with reality and intentionality and strategy , well then we navigated the financial crisis and we were blessed as an organization . You know that our company got we strengthened ourselves through adversity A couple of things piggyback .
Speaker 1I had read another book years ago . Pat called Above the Line Leadership and talks about E plus R equals 0 . The event plus my response will equal . The outcome speaks exactly to your point . Right , an event is happening to us . What I do with it , what I do . Then Pat said it what did you say ? 50% of my genes , 25% I learn , and I've got to do it every day . Consistency is so critical .
Speaker 1We talk about gratitude and I appreciate Pat bringing that up . One of the things that I've added is not only the gratitude , pat , in the morning , but I end the day with it , and I didn't always do that . I would wake up and say , okay , i'm grateful for my family , my friends , the life that I had with my parents before they passed . But I now end the day And now of a sudden , you put your head on the pillow and you feel good .
Speaker 1And I shared the other day that there was a Stanford study years ago that said 60 to 65% of the people in the country are not optimistic . They're pessimistic , and 35 to 40 are optimistic . And the question in this exercise , pat , was , if you had to have lunch with one of them today , who would you choose ? right , and what we know is , when we're around , people that are positive and inspired and can do how to not why not ? And we've all experienced that .
Speaker 1And it's so critical for our listeners to wake up every morning and get right with ourselves and then get aggressive and intentional in communication . So again , pat , our listeners in reality podcast . As you know , this is the real estate community And I'm hoping we have some folks out there thinking about getting in the business , and I'm sure we have some people at 20 years saying , gosh , do I have to reinvent myself or do I simply have to go back to what I know ? But you are a student of our industry , so as you look in your crystal ball for the balance of 2023 , just share with our listeners kind of what your thoughts are on the real estate market , and I would talk about the challenges , but also how do they become their opportunities ?
Speaker 2That's a great TEP . No matter where we go , people were out there saying what is going on . There's some things today that , even though I've been in it since 1972 in four states , there's some things that we are dealing with today that no one has ever dealt with before . So , when we talk about normalization from 2021 , that means different things to different people . So , when you talk about interest rates we've talked about it here , you've talked about it many times 7% since World War II average . We're just normalizing interest rates , so let's take that off the table . People , month by month , by month in 23 , we're gonna get used to 6% 7% interest rates . My father said never , never say never . I don't know if they're gonna get below five again . I really don't , but that part is having gone through it . We've seen all kinds of ebbs and flows , but we look at the average of seven , so let's take that off the table . What is different , excuse me , what is different , though , and no one has ever dealt with before , is interest rate lock . See , the food chain is what is really , really being challenged today , and it's something that we have to figure out , and we'll talk about some of the ways that we're working it . But when you talk about 63% of people having interest rates under four and 34% under three , that is a that's always a question . That's always gonna be a question . That's always a question . Should I put my dream on hold or should I work through it with buy downs with the owner , help buy down , with different date to rate and marry the house , and so , yes , we can adapt with that too , but it has messed with the food chain , which needs us . That's why I started this with optimism . It needs us to flush out and counsel our clients to stay in their world , so that we can counsel them because their dreams are on hold and some of them because of interest rate lock .
Speaker 2Now let's move to inflation . The feds I'm on a fed call every quarter , pat . What's it gonna be to be a soft landing as it relates to housing ? I told him months ago that I would think five , six is gonna be a soft landing . I think seven is gonna be an emergency break . Seven's historically normal , but going from two and three eighths to seven , i think you're gonna cause the emergency break . Talk to an economist since then and what they're really worried about the feds is they want a soft landing . We all do .
Speaker 2Housing's the first one in any kind of slowdown because guess what ? it's interest rates . It's interest rate affordability related . So when you talk about inflation rates where we are in the South , within migration , we're not dealing with what the many other states are dealing with . The historical rate of three , three and a half a year we were happy with since World War II . We got spoiled with 13.3 last year , 15.2 . I predict last year I said it was gonna go to 10 and I was 15 instead of 13 for our 20,000 transactions that we do in the Carolinas . This year I'm gonna predict it's gonna slip to nine , but nine compared to three , four , it's beautiful . It's beautiful , it's a beautiful , beautiful thing . But here's the issue . We still have people out there that need coaches coaching , that say I wanna sell high and buy low , i wanna get what my neighbor got and I wanna buy low . Sell high , buy high , sell low , buy low is an equation that's always been there and will continue to be there , but it has stymied the market somewhat .
Navigating Homeownership and Real Estate Investment
Speaker 2The other part of the challenge that we need navigation help with is our boomers . I talk about , to our blue in our face , every home owner . I just came from the dentist this morning every six months we do dentist . We rotate our tires every so many miles . What maintenance in life , our bodies , our equipment , that we maintain our homes ? Man , once we turned 60 , 62 , which we used to downsize space-wise and step-wise . Now we're downsizing at 74 . Covid probably added two more years . Many of us are aging in place . Many of us are dying in place . We need that inventory out there . The boomers hold that inventory we have And the sad part , where they need us , as coaching is and to do boomer physicals , is we need to help them be ready , to be ready .
Speaker 2Whether they're going to a nursing home , assisted living , independent care , they need to be ready when the opportunity comes . They don't need to let this fall upon their children . Today , families are spread over the country . I interviewed one the other day and the kids are in Seattle and they're 77 , and they waited too long and the home needs a lot of work . Who wants to spend 200,000 to walk out the door ? That's hard , that's a hard conversation .
Speaker 2So we need to get in there early and counsel them early to say , every year , past 64 , do this , this , this . Don't paint without call me , don't remodel without call me , don't even call an electrician without call me because I know the best electrician . So that's the boomer side that needs our coaching , counseling . And the last I'm going to leave it with today is we have to work with these renters , these renters out there , these facilities . Everybody has to be one . Are they going to stop ? Bottom line is under 500 , at interest rates at six . It was a challenge last year with interest rates at three , four at six , with appreciation rates of rent . It's a tough wagon to get on the home ownership bandwagon .
Speaker 2We as realtors need to be coaching every renter . We know , just like every boomer we know , setting a budget , also setting goals , also talking to them and teaching them about sweat equity . Gary , most of us had our first home by 30 and we bought our first homes with sweat equity . We're sanding floors and putting in cabinets . Today They need counsel to say you know what to get on this wagon early sweat equity And maybe it means us helping you talk to mom and dad Nukwe , about a cosine . I said that to Gary . The community of Elvis says my son heard you at a seminar and he wants help now . So there's a lot of counseling we need to do . We open this with optimism . It leads right into adopting three boomers a week , adopting three renters a week , and you know what , even if they're not ready , they have a friend down the hall that's ready , that ran the street , it's ready , somebody at church . So what we need to be doing to adapt to the world , it's nothing new , it's getting personal counseling , which is why we all come into this business .
Speaker 1Awesome . It's interesting . First of all , pat , agree with all that tremendous insight , this boomer aging in place right A couple of years ago , pre COVID , there was a belief that what we call off in the silver tsunami was gonna aid our inventory challenge . And even if people had thought about it , covid took that group out of the market as a seller . And we gotta work . I think the other piece of it is the equity that has been created and built over the last three years .
Speaker 1Every boomer's , every homeowner , has equity that they may not have an exact number on right . So we had an interview not long ago with Steve Harney from Keeping Current Matters and he has a different phrase for home physical and real estate review . It's called a pair . Would you like a professional equity assessment review ? So I mean , think about that , pat , you and I have . I wrote down here my takeaways . Words matter . So if you call somebody , all you're doing is you're going and doing a home physical , you're doing the CMA and all you got to do is add mortgage And you find out that I've got this and it was mentioned not long ago is the boomer has the equity to not worry about 7% right ?
Speaker 1And here's the other piece of you know , a US home ownership rate today , pat , is 65.9% , which means 34.1 don't own . Now , i know that not everybody in that 34.1 is capable of owning because they've got credit or whatever . But there's a percentage of those people that absolutely unequivocally , without question , should buy , but they you started off our session today paralysis of the analysis , and people are just stymied by the media and this and that . So when you think about it , you know the opportunity , particularly if I'm a young millennial and I'm buying , whether I'm six and a half , they're going to have a chance to get another rate down the road And your prediction is whether we see five or not .
Speaker 1We don't know . You know , as you and I know , both of our parents would have never thought we would have gotten two and a half percent , right , you know you could have pulled C , pat , and B , gary and said they'd say not in any of our lifetime . And I think the other piece that I'd like to share is you know there's this whole other concept that being an investor in real estate is not nearly as attractive , pat , because of interest rates , and I'm going to argue that I don't believe that that's true , right , when we think about investment , real estate appreciation , depreciation , equity buildup and cash flow . And the numbers work . You know , to Pat's point , rents are appreciating at a greater level , at a greater rate than home values . And so I would ask our real estate professionals as I , you know Pat's talking about talk to those renters . Gary's going to say not , you know , talk to your sphere , and still a good time to invest in real estate , right ?
Speaker 2Well , gary , i will tell you , you know we all have a little bit of a bad taste in our math and Wall Street investing . You can't blame . There's a lot of money on the sidelines . Why wouldn't you put it in the real estate ? And we worry as homeowners and homeowners associations , we worry about the percentage of rentals in our neighborhoods . But let's back off and just talk about your friend , somebody you sit in the church pew with . Bottom line is anybody that has money should be rounding their portfolio out in real estate . They should not have it all in stock period . So why shouldn't we invest in real estate , even with interest rates investment-wise over seven ? Because bottom line is it rounds out the portfolio .
Speaker 2My dad is a perfect example a realtor . I'm a son of a broker like Gary . Guess what . He stopped showing houses in the 60s and he stopped listing and selling houses in his late 70s . Guess what ? What took him to 94 ? What afforded him and mom this very , very nice assisted living roof over their head ? My mother's still living at 94 . It was because of the 18 investment properties that he bought through his real estate career .
Speaker 2So as long as we don't put our clients interest above ours , if a property comes available , why shouldn't we . I always make it really simple . If I come over to your house today and you were a fish purveyor , i would expect the best piece of fish I could find . Why wouldn't we who are in this business ? why would we not invest in what we know best ? So , yes , the investment audience needs us also . So renters need us , investors need us , boomers need us . I have never in my real estate career felt so needed . But I have to have the zeal , the passion . When I don't have answers , i have to say here's why I don't have an answer , like I tell the Fed on interest rate lock . As long as people understand why you don't have the answer , it's a beautiful thing as a realtor .
Speaker 1It's interesting , pat , you share about your dad and the real estate . I'm reminded of interest rates . We talk about the last 50-year average being 7.92 . Back in the early 80s , about 10 years into your career , they were 16 , 17% . I tell this story often that during those years my father had seven kids in private school or college . After I understood what that meant , i said to him how on earth did you pay for that ? He said I refinanced everything I owned To your point .
Speaker 1we can use the equity we build up in our real estate at different times and places in our careers , because you never know what you never know . I think the other thing that's really interesting is we talk about these opportunities to connect with boomers , renters , investors . I think the other piece of it is you sold a house a year ago , two years ago , three years ago , four years ago , five years ago . They're not a boomer that's going to move . They're not a renter because you sold them a house , pat . But we have to do a better job to go out to those people , don't say the person I sold a house to three years ago . they need the professional equity assessment review , home physical real estate review , make sure I've got the right insurance . It's funny you talked
Staying Connected With Homeowners
Speaker 1about .
Speaker 1I go to the dentist once a year or twice a year and then I get my oil changed . In today's world , i say every six months . we get our phone and it looks for what We're going to upgrade our operating system . You and I have talked about this . Our bodies are operating systems that we got to make sure we take care of , but our houses are operating systems . So often you and I over the years have experienced that people wait till they sell their house . they do all the work And then it's so nice they don't want to move . And every year you got to keep on that thing because it is a machine And the more consistent we take care of it and our real estate professional we talk all the time is when I'm going to repair , when I'm going to remodel , when I'm , when I'm , when I'm , we have to be there . When I got into business in the 80s , pat , people moved every four to six years . Today it's nine to 11 . So we've got to be even more intentional .
Speaker 2Unfortunately , I'm going to go to my grave with the most frustrating thing as a realtor , And that is we chase for a transactional based business . Where , when do you think of a realtor ? the world thinks of a realtor when they buy and when they sell , And that's the most frustrating thing that we need to better . How much we don't stay in the lives in the homeowner's cycle . Boy , go to a car dealer today . Where do they make their money During the cycle ? they don't make it at the sale . And the list Bottom line is we as realtors , first of all have to have a fabulous CRM .
Speaker 2It has to be a segmented CRM . It has to be personalized . I need to know that Gary's son went to firm and I need to know that he played quarterback at Providence . I need to have that in there because I can call up and say Gary , how's your son doing ? What career is he in now ? Bottom line is that's the start , but that's only the start . The seven hours resonate with me right now .
Speaker 2We all got our assessment letters and I'm sitting in my condo building with 15 homeowners and I'm the real estate guy And boy the assessments came out . So an average $350,000 assessment increase in this condo building And boy , on one hand , yippy On the other hand , oh my goodness , They need a realtor to talk to about just a simple concept of tax balancing . What is the city county going to do Just to calm them down ? You can't have your cake needed too . Before they the color remember ? A minimal gray went , Minimal gray went . It's now the Sherwood , something , Okay . So now we're moving to the greens .
Speaker 2We as realtors need to stay in their lives when they remodel , repair everybody in North and South Carolina . I just had a car accident and , my goodness gracious , where do you see ? Where do you see what our insurance policies do this year ? We need to shop our insurance once a year . We need an insurance physical once a year . We need to absolutely unequivably . Don't refinance without us , because we as realtors know today who is the best rates in terms long term . There is no such thing as no closing costs . There may not be a closing costs on the HUD sheet but trust me , in the terms , bottom line is it makes up .
Speaker 2So the seven hours I call it , we as realtors got a really no , you shouldn't call me . When you no , I should be calling you . They should call me , They . I should say your assessment letter just came out . How do you feel ? Oh , don't fight city hall without me , because if we do fight city hall , I got we got at the time of how long you're going to be here . How long are you going to be here to save $200 a year ? Would you really want to go on public record and say your house is only worth this If it is justified .
Speaker 2Let's get some neighbors and let's go as a group . Misery loves company and we'll do this together . They need us , but we got to put ourselves in that position , which means we can't hide behind computers . We have to be out there , toe to toe , face to face . When you're walking your dog , you can see what house needs love . Anybody who lives in a 25 year old community , anybody that lives in a 25 year old community , needs home assessments annually , and we're the people to do it . We just have to put ourselves in that position .
Speaker 1So , so , pat , I think it's first of all , our goal of reality is for everyone to get three points , three takeaways . So here's what I know . If I was listening to you today , i probably got a page , but we talked about the seven hours for the last five minutes . Just make . Let's go through them real quick . You've gone through them .
Speaker 2As a real . As a real , i should stay in the lives of every homeowner out there , even not just past clients , every homeowner that I know their realtors forgetting them . So we need to crawl into their lives with the seven hours , which means they shouldn't refinance without you . They shouldn't reinsure without you Every year . They need insurance physical Assessments every four years now and some other parts of the States is different , but they need us to help them when the assessment comes .
Speaker 2They shouldn't remodel without us because they do foolish things . They over or under for the price for the neighbor . They shouldn't even call for repairs without us because they shouldn't call Angie's list . They shouldn't review reviews . Guess who's using the electrician and the plumber and the roofer and the gutter . You're using them every day to get to the closing table . You know who's fair , who's right , who do it right And guess what , when something is needed last minute , you can call them up . They're dependable Referrals . As a realtor , we're pigeonholed . We're pigeonholed where we work and live and play and pray . My cousin in Texas doesn't know I can help him . He has no idea . I can help him around the world with referrals . I think that's seven . Gary Should be .
Speaker 1Yeah . So it's interesting because I present the 7Rs as you have built it into the culture And I think the other piece of referrals is , i added a component to that And that is you know , when you stay in the lives of your clients and when you stay connected with them with the annual or every other year checkup , the opportunity to talk to them about you said it earlier their friend down the hall , their neighbor down the street , when I'm bringing them value , when they don't need me for buying or selling but I bring them value , that ask for the referral becomes second nature . It doesn't become awkward . So I'm going to share this .
Speaker 1Jared James , who we had at an event , talked about a bow tie . So I want our listener to envision a bow tie . And if you had a bow tie driven on a piece , written on a piece of paper , drawn on a piece of paper , pat , on the left side , you got a wide opening . On the right side , you got a wide opening that gets caught in the middle And he says on the left side is where real estate professionals are great at getting clients , they're great at getting buyers , they're great at getting sellers , and then we're at . The tie is where we go to closing And what he talked about was the key to success in the future is what we do post closing . Too many and you've said it six times today too many of us stop at the tie . We stop after our real opportunity starts , the day of closing .
Speaker 1And I think the other thing he said which really resonated with me is we hear often people refer to past customers and clients and he said they're your clients , they're not past , they will always be your clients . So you know we've had a couple conversations today , pat that words matter , the words we choose matter , particularly when it comes to , you know , kind of an anxious time in our industry . So one of my favorite parts and you know we prepare for these podcasts , just let our listeners know , but there's always something I leave out in the prep . So I love rapid fire , pat Riley . So you got five questions to let our listeners get to know you just a little bit better , pat Riley .
Speaker 2Favorite food Not health wise , but my favorite food is pasta Italian .
Speaker 1So I will tell you 82% say Pete pizza . I had three weeks in a row . It was like lamb chop , pork chop and something else I'm like . well , i don't know about that , but pizza usually wins the day and everyone .
Speaker 2caveat , i'm not pizza , but I'm gonna give me a good bolognese or a good , a good , a good , uh , medicati , or lasagna , i'm in .
Speaker 1The movie over the years . Pat your favorite movie .
Speaker 2Probably something's got to give It's hilarious , love it .
Speaker 1Love it . I'm pretty confident I don't know this about all of our guests only because I know you pretty well . I know that from time to time you'll grab Netflix or Prime Video and you'll watch . I'm not going to say you binge a lot because you're sitting still for a long time , but you might watch an episode today . Give us a must-see series on one of the streaming .
Speaker 2I have to be honest with you . I didn't even know what Netflix was until COVID COVID . I fell in love with it . I am . Yellowstone has to go down in history as the one that captured me the most . Right now I'm three-quarters of the way through Ted Lasso , enjoying that .
Speaker 1Yellowstone quickly became my favorite . Ted Lasso is on my list . I've shared with our listeners before My favorite to our West Wing and Friday Night Lights . I've done the West Wing all seven seasons three times . I can be with the West Wing all day long . Number four Pat Riley . You're a reader and we've already talked about a book , heart Optimism . I know you stay in tune with all kinds of different things to continue to master your craft . A book what's a must-read for our audience from the Pat Riley book club .
Speaker 2Boy . There's a lot of some old , moldy oldies . His marketing warfare was a fabulous one , i have to say , and these aren't famous writers . I just think that Michael Staver leadership is not for cowards Probably was my biggest leadership wake-up and then coupled with him being with us so many times . I just think leadership isn't for cowards , it's a business , one that love .
Speaker 1Yeah , For those . first of all , we appreciate that . As Pat said , Mike is a great friend of ours . He's been a guest on Reality Podcast , That book is . I always say , Mike entertains you and then grabs the two-by-four and smacks you on the side of the head . You laugh and then he gives you . and so terrific , We're going to wrap up , Pat . You've given all kinds of opportunities for our listeners to gain some takeaways . One last bit of advice , one piece of advice for every one of our listeners today .
Speaker 2I believe three words again As a leader , when we don't have answers . I think COVID was the wake-up call for me to really and it's how we started the show is control the controls . Stress My skinny little heart doctor always says I bury many more skinny boys and fat boys Makes me feel a little good . But the reality is we have to , as leaders and in real estate , as realtors , we're leaders , we're coaches and counselors . We talked about optimism . Bottom line is being optimistic no matter what comes our way . The reality is control the controls . Let go what you can't control .
Speaker 2I didn't finish the statement on the soft pedal , hard pedal . The economist from Clemson , the dean that just spoke to us , said in 1972 , 73 , 74 . I think it was during Carter Don't take that to the bank . When I first came in in 72 , we went into a recession , a typical 18-month , 24-month recession . But they were in the same kind of situation here , where anytime you have a little recession it's because the raising rates to control inflation . Well , guess what ? They let the pedal off the brake too soon and the second dip extended it to almost three and a half four years .
Speaker 2What the Fed's really afraid of right now ? Yes , it's an election cycle . Everybody wants a recession during an election cycle period . Bottom line is that's over here . But really what it is is , boy , what we can't afford right now , especially after the bailout and all the government money and infusion , we can't afford to take the break off too quick and put ourselves into a real situation . I appreciate that they're looking at 1972 , 73 , 74 . I forgot about it and I was new to it . I think that's why , today , a quarter percent , no , this , yes , no that . I think that indecision is hard for us in the business when it's indecision , but I think they're being very , very careful to say man , we don't want a double dip here .
Speaker 1Yeah , perfect . So a big thanks to Pat Riley
Takeaways on Gratitude, Education, and Communication
Speaker 1. I'm going to share the listeners when we wrap up my three takeaways from a great 45 minutes . I go in gratitude , man , every single day . just continue to be grateful and thankful for the things that we have , not those things we don't have .
Speaker 1Number two sharpen the saw . How important it is to just stay on our game . know the numbers , know the market , read , understand and then be able to educate and counsel . Uncertainty creates fear . Fear creates speculation . Let us be certain in what we know and be positive and optimistic , but realistic in how we share it . And then my last one , which our listeners have heard many times , pat , and that is in today's world , more than ever , words matter . Choose them carefully , customize and personalize the experience with your clients and make sure that you just make a difference in the lives of the people that we are so blessed and fortunate in the industry . we've chosen to make a difference . As always , we thank our listeners . today , we appreciate you because without you we don't get to do what we do , and not only a great leader in our industry , but a great friend , pat , thanks for joining Reality Podcast . Thank you , gary , thank you .
