Janet - Admittingly, I suffer from those same demons ... and it can cost.  Interesting thoughts here and I believe you are onto something ...

Jason: At least we admit they are demons. It is very difficult in our business to make these calls because each loan opportunity is somewhat like a surprise package. Some of the easiest looking loans involve the most hours.

This is why I see this a a skill worth nurturing. Making calls the best way you know how, play by play, just like a brilliant quarterback. You can get better at this, and I am trying.

If we were having this discussion after you had just lost several marginal loan apps perhaps our conclusions would be different !

Janet, I don't know how to respond here other than to say if you got the loan through it was not a worth moving on to the next loan.  Because of your efforts someone has a home.  Their appreciation may never warrant the effort you put into getting it approved.  However, you did a good thing.  Thank you for sticking with it.

Bill: having lost several marginal loan apps IS the inspiration for this post.Should I have passed and worked on something with a better chance of closing?

Ironically, having a loan approved and realizing it wasn't really worth the time are what made me come to these conclusions.

You can't have regrets, and I don't. But in a business where you must first invest the time in hopes you WILL get paid, you have to think a little more ruthlessly than say the lawyer. He can drag things out all he wants, he is getting paid by the hour win or lose.

We must make constant judgement calls and my evaluations often neglect to consider time invested as a cost of doing a loan.

Jimmy: Thank you for thinking this way. As I said to Bill, I am thrilled to have a new client, there are no regrets. Who knows? Maybe referrals will follow and it will be worth in 10 times over. That is what you hope for, anyway.

But for all those that I invested in and did not close....those cost me the time I could have spent on a different loan. Opportunity cost.

But as they say, business is business, and if I choose not to invest myself in a loan, it does not mean the person will not get a loan. It means they will get a loan from someone else who is willing to work for less than me, or can be far more effecient than me (perhaps they specialize in this loan and can do it quicker than me)

Janet: Great post. Our time is valuable, no more so than today. I always think about a friend of mine who is a successful financial advisor. She only works on cases that she can see getting done and she's very aware of new guidlines, her time, etc. We should all be that disciplined. These days, we all need to decide if a loan and prospect are worth working on. If not, we need to definitely move on. If we're upfront with the client, they understand that their loan may or may not happen now. Keep up the thoughtful and great posts!

Paul

Hooray, Paul. You got this post. I wasn't sure everyone would.

Thank you for the example of the financial planner who is focused on her time. That is really the message of this post....not to forget that a loan CAN and SHOULD be looked at as COST per hour invested AND likelyhood of closing.

When all is said and done, we are business people. For so many years I just grabbed everything that came my way and worked it until it closed. Mostly they closed, those than didn't you didn' worry about.

Now, I look at every loan and evaluate. It takes guts and a new way of thinking to just pass on potential business that comes your way.

Note the word potential. Said loan is also a potential time waster.

I believe that it's the commitment to the clients that will rule the day in the long run.  If you think that the loan is a good one to make, then by all means fight for it!

Bob Mitchell

ValueList Real Estate Services, Inc.

Bob: Unfortunately, I could commit to each client that wants me to do their loan. What makes it a "good" loan? If I need to fight too much, the hours will pile up. When the hours pile up, I am making less per hour.

Is a good loan one that will make me the most money? take the least time? Have the least stress?

Do I do it because they are a previous client, even if I know the loan will be difficult?

I only have so much fight in me. I am trying to figure out how to distribute it! Thanks for your thoughts.

I don't buy it Janet....somehow I don't think you are going to be Ruthless.  I know I never can be.  I am committed all the way, but also firm with my clients so they know where I stand.  And I try to educate them, I know you do the same.

Roxanne Schilling, Realtor at Lake Tulloch

See you on the Lake.

It's so difficult for me to be selective. I want to help people and some are very difficult to place. I have two such borderline deals working right now and I sometimes wonder why I have invested time and effort in these transactions... but I know why. These people have a real need to be here in Contra Costa Co and I want to help them make it happen.

Janet.....by the way......I see my new neighbors pettering around the house as of yesterday.  I think congratulations is in order?  I wonder if your blog is kind of a coincidence?!

Roxanne Schilling, Realtor at Lake Tulloch

Hi Janet...As a former REALTOR you know agents face this also. 

Perhaps you are being Realtistic and not Ruthless. 

However, as long as there is a possibility that they can get a loan shouldn't you be working toward that goal?

Kate

Hi Janet - I think the "loss leader" transactions do contribute:  to your reputation, to referrals and future business, etc.  I'm new as a sales agent so perhaps my views will change.  But it sure seems to me that you a good thing.  Thanks for posting this & giving us something to think about!

Great post, Janet. You've done a great job of explaining the new reality. I try to be realistic up front about who we can get through and who we can't. It is the make sense deals that would have been no problem in the past and now are being squeezed out that make the job tougher. Once you make the decision to go forward it is hard to let go.

Wow Janet!  Love this post. It sings to me as this is a mindset that I speak to my clients about frequently.  You have just tapped into the power of manifesting what you reeeeally want and there is nothing "ruthless" about that.  We each need to be very careful about what we say "yes" to in the world. As is in so many other areas of our lives, saying "no" can be one of the toughest single syllable phrases to utter, but the positive power it can generate is awesome to witness. I suspect you are going to experience some wonderful opportunities in the very near future. Good stuff, makes a Coach's day to read this type of post.

Hmmm interesting.............Pass or Play - is true not just with mortgages but in Real Estate, Relationships........purchases....(smile).....some are 'business' decisions.......and some we make wisely, others emotionally, sometimes there are personally reasons for working a deal that go beyond all of that....I believe we could be 'safe' to play these 'intuitively'.......we ultimately do know somewhere deep inside ourselves when to play and when to fold..........don't you think?