Year two of The Basis Point begins next month, and lots of exciting things coming at you soon. We’ll start to share more of this stuff on a daily basis, and on that note, here are a few bullets on things we’re thinking about today…
BUSINESS, SALES, LEADERSHIP
– Recruiting is even more of a long game than selling. Or it should be. Fast hires are only advisable if there is shared history. I learned this watching Road House, so it’s gospel.
– Stating the obvious here, but the right team is the most important part of any business.
– The founders of HP once said good companies don’t die of starvation, they die of indigestion. I couldn’t agree more. And great teams are the key to handling growth for great companies.
-If you had to choose between these two wishes, which one would you choose?: (1) Your days are 100 hours and everyone else is still on 24 hours, (2) You get 3 permanent team members of your choosing solely dedicated to your vision for zero cost.
HOW YOU’LL BUY & SELL HOMES IN 2020 & BEYOND
– Creating a one-stop shop for home buying, financing, and selling will remain the hottest theme in consumer finance and real estate for 2019 and 2020. Billions are going into these concepts to serve you.
– Here’s an overview of what this means for you.
– But this is really hard to get right. Companies have an extremely difficult time first connecting with you, and an even harder time keeping you all the way through a home purchase.
– Why? Because you stray during the process.
– Even if a lender had you pre-approved, it’s going to take you 4-5 months to find a home.
– You might walk into an open house and the realtor hosting it might invite you to use their lender.
– Or you might click an Instagram ad because any home or loan search stuff you do now follows you around.
– A bit creepy, but it’s becoming so advanced, most of us are cool with it.
– Random pop up ads were way more annoying, but relevant ads are winning us over.
– Relevant ads also make us shop more for home buying, selling, and financing services.
– So we aren’t loyal.
– Ideally the company that pre-approved you in the first place retains your attention during that whole 4-5 month process.
– Companies are working furiously to figure this out, and you’ll win in the end.
– The Basis Point’s consulting arm helps companies figure this out, so if you have comments about how banks, lenders, and real estate companies engage with you, please reach out and share.
– And if you’re a consumer finance or real estate company trying to figure it out, make sure you don’t die of starvation by 2021.
– Roughly $1.6 trillion in home loans will be made per year for the next 3 years, and 75% of these loans will be for home purchases.
– If you can’t find and keep customers in this new world, you’ll go hungry for sure.
WHAT IF HOME RENTING WAS MORE FINANCIALLY BENEFICIAL THAN BUYING?
– Would you still buy a home if you could instead use that down payment money to lock in a rent-controlled home below market rate for 30 years?
– Let me know. Doing some research on this now.
10 YEAR OLD TEENAGER
– My kid just walked in the door with his mom and said in an incredulous voice: “It’s a meme, mom.” He’s only 10 but the teenager voice is already forming.