Time Has Value - Episode 83
John: Come on, you can tell.
Oscar: This is what HAP does.
John: This is what HAP does.
Melina: Okay, it is what HAP does.
Patty: Yeah, exactly.
John: Are you ready?
Melina: Welcome to Flippin' Off, a purpose-driven podcast about flipping houses and making a difference.
Hey, everybody. Melina Boswell here. I was just listening to our intro in flipping houses and making a difference. And so today I want to spend a little bit of time talking about an actual situation where we did make a difference in somebody's life. And so, in their... Well, I think we save homes and we save lives and we flip houses, too. That's what making a difference really does mean.
And so, today I have with me, Mr. John Slater.
John: Good morning.
Melina: And I have with me, Ms. Patty Lutz.
Melina: And so today we wanted to talk a little bit about... We've had Patty on the podcast before and we talked about her journey with New Wealth Advisors Club and from the beginning and then just how she's grown and grown from being a student who knew nothing about real estate to working her way through her own business and now becoming a junior coach. So coming up through the ranks, which is very exciting for us.
And so today I wanted to discuss... Well, we've discussed how many homes Patty has actually saved. So I thought today would be a good time for us to dig into the details or get into the weeds, if you will, about one specific property. And it was difficult for us to come up with one specific property, but we thought it would be interesting and helpful for you guys out there that are listening that are just now starting your business and trying to wrap your mind around how is it possible to actually serve a homeowner and not get paid. That's one of the very first questions that I ask people when they come into the club. I pose this question, you know, if you have the opportunity to help a homeowner who's in distress save their home and not get paid or you can buy their home at a deep discount and make $40,000, would you be willing to help them save their home and not get paid?
And if your answer is "No," that is perfectly okay, but this is not your home. We are not your people. This is not your club. So because we do put people ahead of profit. And so I think people love the idea or that concept, but they don't really understand how that's even a possibility. What does that really mean? How do I help somebody save their home and not get paid? How is that even a reality? So we decided to take a case, if you will, today, and an actual property with a homeowner and it's like a case study, yeah?
Melina: And this was John's idea.
John: Yeah. Yeah. I mean, I've seen it myself, you know, being in the room not fully understanding what it means to actually go help a homeowner. To go serve a homeowner and not worry about the outcome, you know, the monetary value. And we've been fortunate to do it several times and to also help those homeowners get out of their house and actually purchase properties and do deals and make money. But, you know, I really liked the idea of Patty coming in and talking specifically about some of the scenarios because she is heading up our HAP program. She's, you know, spending a lot of time working with homeowners, answering phone calls, working with other students and you know, she's building that. I can't think of the word that... You know, she's somebody that people look up to.
John: Credibility. They know that they...
John: That's what I was looking for, reputation. You're building your reputation as somebody who, "Hey, I need help with this homeowner. I'm going to go to Patty because Patty is going to be able to help me."
Melina: Yeah. So with that being said, we decided to pick ... There's so many different cases that we could take and kind of dissect a little bit, but we chose one that we think is a beautiful story and there's a lot of great things about it. Has lots of twists and turns in it, which makes it very interesting. So let's start with that one and we will leave out very specific personal details of the homeowner, but we can talk in general, but we'll give details of the situation. So, Patty, this property is in what city? This one we're gonna start with?
Patty: Rio Alto.
Melina: Okay, the city of Rio Alto. And tell us how you came upon this property.
Patty: I was door-knocking and I door-knocked this property one day and we're standing there with an older gentleman and a younger man. So I start saying, "Hi, my name's Patty, a homeowner advocate," blah, blah, blah.
Melina: Okay, so hold on. You knocked at this property because it was in pre-foreclosure?
Patty: Yes. Oh...
Melina Okay, that detail.
Patty: Yeah. That's it.
Melina: Yeah, that's an important thing. Like, why were you at the door? So...
Patty: They were in foreclosure.
Melina: Okay. Do you remember how far into their foreclosure they were?
Patty: Pretty far. They were in NTS status.
Patty: And if you want to learn how to door knock, I would not do NTS is because people are more likely to talk to you then versus pre-foreclosure but you want to do pre-foreclosure to build that relationship. But this was an NTS and it was, like, I kept watching it getting moved. So we still...
Melina: Hold on just for training purposes. Patty had caffeine this morning, guys.
Patty: Yes, I did. I woke up minty.
Melina: That's good. So NTS stands for Notice of Trustee Sale, which means that the property has already moved through the entire foreclosure process and now there is an actual foreclosure sale date. So the date had come and then it had been postponed. So Patty was watching the actual foreclosure sale date being postponed, which made her say, "I gotta go see what's going on over there," right?
Melina: So you go, you knock on the door. And that's the intention trying to understand what's happening here. Why has their house not gone to auction yet?
Melina: Okay. So you get to the door.
Patty: So I get to the door and I knock and the older gentleman starts talking and he's in Spanish and I'm only English. And there's a younger man who was, like, listening as well. And then he goes to close the door and then the younger man stops him and says, "Dad, I think you need to listen to her." And they said something in Spanish, I have no clue. And then they said, "Okay." So I said to the younger man, I said, "Okay, I'd like to set an appointment with your father to come back here and maybe go over to Wells Fargo," because that's who their mortgage holder was. So he makes the appointment. And I said, :Okay, fine." And it was, like, a week or so later. So I come back a week later and the father's, like, with the wife this time, "Nah, nah." And I just looked at him and I said...
Melina: He said "nah," like, "I'm not going to go with you?"
Patty: Yeah. "Nah, I don't want to do this."
Patty. It was one of those kinds of nah's. And then I said to him, "Well, I'm busy and I'm not coming back here when you change your mind." So I just scooped him up in the car. I grabbed him by the arm and I'm like, "Come on. We're going right now. Get your wife. Let's go." So we go to...
Melina: So, hold on.
John: If they could see our faces…right now on this podcast…
Melina: So imagine, these are strangers...
Patty: Yahs, they are.
Melina: ...and Patty is at the door and she says, "Hi. I'm here to serve you." But I really love what you said, which was, "I'm busy. And in essence my time has value. You need me way more than I need you. And you don't know that right now because you are stuck," right? Because when people are in this kind of a situation, it's traumatic. And when people hit trauma, they do one of two things, right? Fight or flight that kicks in. And so for them, maybe they had already given up...
Melina: ...and so they just said, "nah," like, "We're tired. We give up. There's nothing that we can do." And Patty said, "Nope. I'm not going to be okay with that. So get in my car. Grab your wife and get in the car and we're going to Wells Fargo right now," Because you had made an appointment.
Patty: Yes, I did.
Melina: And so you weren't going to miss that appointment.
Melina: It was basically , it was, like, "It's now or never, buddy."
Melina: So he got in the car.
Patty: They both did. And she was all smiley. He was in the front seat with me and she was in the back smiling because I could see her in the mirror. And she was like happy that he got in the car and we were doing this.
Melina: She was probably shocked.
Patty: Maybe that was it, could have been.
Melina: And did the son come this time?
Patty: No, he was at work. He was at work, but he had set it all up.
Melina: Okay. Got it.
Patty: So I knew he wasn't going to be there, but I was unafraid because I had Google translate. So we get over to Wells Fargo.
Melina: So you were communicating with him through Google translate.
Patty: And I liked it better when I had my computer because then we would just type and it was easier to type and I would always type in English and then the Spanish translation. So when I would go back and read these conversations, I knew what we were talking about.
Melina: Wow. That's awesome.
Patty: And so when we get to Wells Fargo, we meet with the woman and I told her everything that was going on. So then she talks to them in Spanish and they verified whatever I said to her. And she comes back to me and she goes, you know, "They are way past their appeal date and we were taking this to auction but you don't speak Spanish." And I'm, like, "Nope." She goes, "Why?" I go, "Because I never learned it." And you know, "Language is not a barrier as long as I have Google translate. And I tried it in different languages and it's pretty good." So she was, like, "I'm gonna open it back up because you're not afraid." So she goes, "When can you get everything submitted?" I go, "They have one week because I'm going out of town." And I wanted it submitted before I left.
Melina: Okay. Now, so let me just stop for a second. Go ahead.
John: I was gonna say, because I'm listening to all this story and I'm thinking it's important to mention that the fact that they are in Notice of Trustee Sales stage and is being postponed, it means that they've not done anything for at least four months, maybe even close to five months.
Patty: Well, when he was trying to change his mind, I found out it's because he was scammed 12 times by his own community. And then this white girl comes walking into his life and he's, like, "Why should I listen to you? You're not even Hispanic.". And I was, like, "It's your choice but if I were you, I'd listen."
Melina: And so I think that's a really important piece. And then also, I think it's important too for everybody out there to understand when the lady at Wells Fargo is saying they're way past their appeal period, she's talking about a loan modification. And you knew, Patty, that they would qualify for a loan modification. They just didn't have their paperwork straight...
Melina: ...right? And so you knew that they needed to be able to get their paperwork straight and you knew that's what you would be able to help them do?
Patty: And we did that.
Melina: So when you get to Wells Fargo, it's like, hey, the lady says, "I can't believe you're here with them. I can't believe you dragged them in here. But they normally, this would be a closed case and we're going to take it to auction, but instead, we've decided that we're going to open it because you're showing up here and nobody understands why in the world this white woman is here with this family."
Patty: None English speaking people.
Melina: Right. So go ahead. So then what happens? So...
Patty: So then after we opened it up, she goes, "Well, how long before they get all the paperwork?" So that told me that they must have been lackadaisical on getting their paperwork in prior or the 12 people that helped them prior just didn't do it. Just took their money. And I wasn't charging them. That was another reason why. I said, "They have one week to get it all together for me because I'm going out of town and I want it done before I leave." So I spent a lot of time with them that week, getting the paperwork and then finally we submitted it and the income wasn't where it should have been because the wife's money, it was, like part-time and sometimes... She worked and sometimes she didn't. She worked at those markets where you sell things in a big parking lot. I think they are flea markets. And so it was sporadic. So I looked at them one day and I said, "Where's your son?" They go, " He's in his room sleeping." I said, "I need to talk to him."
So I remember we're sitting in their kitchen table and he comes out half dressed and he's a young thing, like, 22. And I'm, like, "Oh my gosh." So, he comes out and I was like, "What do you think about this idea?" And he goes, "What?" I go, "Your parents need some additional income. What do you make a year?" And he goes, "That's kind of personal." I go, 'Well, what do you want to do here?' And he tells me. I'm like, "That'll get them over the threshold they need to be.'' So he goes, "So what does that mean?" I go, "That means you're part owners of the house with your parents." And the parents are, like, shaking their heads, "Yes." And he goes, "Okay, I'm doing this." I go, "Here, sign right here." And we submitted everything. They got saved. They're still in their house today. They sent me a birthday card this year.
Melina: Did they?
Christian: Hi, this is Christian Rios. As many of you know, I've been a member of a New Wealth Advisors Club for over seven years and got started when I was 17 years old with absolutely no real estate experience. One of the biggest lessons I've learned from being in the industry is the need for authentic relationships. If you're looking for an actual team locally in Southern California with all the resources needed to close deals, register for one of our free workshops by visiting www.joinnwac.com. Thanks for listening to The Flippin' Off Podcast.
Melina: Wow. Okay. So back up. Because that's, like...
John: This is so much...
Melina: ...There's... Right.
John: ...so much going on.
Patty: I went too fast?
Melina: It's so much to unpack.
Patty: I'm sorry. It's the caffeine.
Melina: No, it's fine. It's good because you know the beautiful thing Patty, is that you're just like, whoa, you just had this idea.
So bottom line, in order for somebody to qualify for a loan modification, they have to have enough income. And you're saying that her income... So husband works, wife works, but her income is sporadic so it didn't hit the threshold in terms of income versus expenses. The debt to income ratio. So you had the idea of using the son's income, which was actually quite wise because he really was living there.
Patty: Yes, he was.
Melina: Right. And so I'm sure he is really contributing to the household.
Patty: Yes, he is.
Melina: It's just nobody thought to add son's income onto title and as income to be able to qualify. And when you had that idea, you make it seem like, "Okay, sign here," and that's it. There's a lot more to it.
Patty: Yeah, there was a lot more, yeah..
Melina: Yeah. So, and I really appreciate that you, you know, simplified it. But the reality is is that that one idea that you had, that one inspiration, that was truly the missing link to get them over the threshold to be able to afford their mortgage payment, to be able to get a loan modification, to not lose their house to foreclosure.
Melina: And that is so amazing and so exciting.
Melina: And so you got the paperwork in and they were approved.
Patty: Yes, they were. And they're still in their house today.
Melina: They sent you a birthday card.
Patty: They sent me birthday cards.
Melina: Would you tell... You, told us that after everything was said and done, what the husband, the conversation you had with the husband.
Patty: Oh, that one, yeah. When everything was said and done and they were in their house and the trial periods were over, I was sitting at their kitchen table and he looks at me and he says, the father, "I speak a little bit of English." And I looked at him and smiled. I'm, like,"Really? So you made me do this?" I go, "Okay, I know how to do Google translate really, really well because of you, so thank you." But he did understand a little bit and he could talk but he just chose not to.
Melina: Tell us why. What did he tell you? He said he didn't trust you.
Patty: Oh, he didn't trust me because he was ripped off 12 times before by Hispanics. And then...
Melina: And he told you that?
Patty: Yes, he did. And then in comes walking this white fast-talking girl, that's what he was calling me, the white fast-talking girl, and who said everything right but he was just nervous because I wasn't Hispanic. But he kept thinking back to, "Well, they ripped me off. And they charged me money and you didn't, you never wanted money."
John: So you were door-knocking in Rio Alto, which, you know, there are parts of Rio Alto that, you know, we all know are predominantly Hispanic areas.
Patty: I wouldn't know that, but yeah.
John: I mean, I used to live in Rancho and I used to pick my areas carefully unless I was door-knocking with my wife who was a Spanish speaker. And if I wasn't door-knocking with my wife, I would generally avoid certain areas simply because I don't speak Spanish. So, you know, I...
Patty: It didn't scare m .
John: Clearly for you... I mean, it's so funny listening to it, but you know, Patty is, like, "Oh it's a door. It's a door I need to knock because the homeowner is in foreclosure. I don't care what their name is, who they are, I'm just going to go knock because I'm authentically here to serve again." And to fact that you are then... I'm just thinking how many members of our community would have seen a Spanish speaking homeowner and then just left a flyer with them and walked away and not even had any kind of conversation and probably two, three weeks down the line that homeowner would have lost his house in a auction?
Melina: It's absolutely right. That is a guarantee. That is exactly what would have happened. And so I think for all of us, the lesson is this, when we talk about people over profit, that people matter more than money, we really live it. We don't just talk the talk, we actually walk the walk. And so Patty, once again, like, you know, thank you. On behalf of that family, thank you for, you know, honestly for fighting with him. It's almost like you fought for him when he couldn't fight for himself. It's not almost, that is what happened. Like, he said, "Never mind."
Patty: He was done.
Melina: "Never mind. I'm not going to go to the bank with you." And you said,"Ooh yes you are. You're getting in this car and we're going right now." And that is a beautiful, miraculous thing. And so, and then, you know, the fact that you had the idea that proves your expertise. So as silly as you are talking about the son with no shirt, right, but then on the flip side of it, your intellect, what you know, your skillset, your expertise cannot be questioned, and I am so impressed by that.
Patty: Yep. Thank you.
Melina: And I am very, very thankful. So, again, on behalf of our entire community, on behalf of that family, thank you for, like, saving a family's life. That's, like, no joke. So much better. So much better than making a dollar, isn't it?
Patty: Oh, yeah. I mean someday I'll hit the lottery and I won't have to worry about that.
Melina: There you go.
Patty: And I could just do what I do because I really enjoy it. I really enjoy the look of faith restored in a human being after so many people scamming them and hurting them and lying and taking their money or money they don't have. I mean, I just had a thought about another family that we saved and I couldn't even pronounce their name. And I'm looking at the name that day and I'm like, "I don't want to knock on the door because I can't pronounce the name." Thank God they weren't home but they called back and we ended up saving them. And one time they almost got itchy ears. Someone came to the door and said, "Yeah, I can get you out of this mess real quick. It'll cost you $2,500." And the wife was like, "Well, if I'm gonna pay somebody $2,500, it's going to be Patty, not you." They came to my house with $2,500 and I was, like, "No, if you have a spare $2,500 you send it to your principal. Not your payment, your principal."
Melina: Very good.
Patty: Which they did do. And now they bring me food. Great food. Lots of wonderful food.
Melina: And there you have it.
John: You make it sound so easy. And I know to a lot of listeners, you know, particularly newer people that are maybe not come to training yet or just starting out on their journey, the way Patty explains it is just, "Oh, and I did this and I did this and I did this, and then it's no big deal." And you know, I don't think a lot of people will stop, stop to really realize how much of a big deal it is. I know Melina's you know, thanked you and thanked you and we can't thank you enough for everything you do for helping serving homeowners, for helping the community at the club but it's a huge deal. This is somebody that's losing their house. They're losing their biggest asset they're ever gonna own. They've been scammed by 12 people. They've probably lost thousands of dollars paying people and he's just about to give up and in walks Patty.
Melina: Fast-talking white girl.
Patty: That's what he called me, fast-talking white girl.
John: I mean, I've just got chills.
Melina: Me too.
Patty: Got bumps.
John: Reading it back in a slightly slower version.
John: A slightly slower version but really emphasizing you absolutely changed somebody else's life with no expectation of anything in return.
Melina: Amen. Thank you. Thank you, Patty. All right. Well, Patty, thank you again. Johnny, thank you very much. And...
John: You're welcome.
Melina: This is NWAC and we are Flippin’ Off. Toodles.
Melina: I'm Melina Boswell, your host of the Flippin' Off podcast. I really hope you enjoyed it. If you did, we'd love for you to subscribe, give us a five-star rating and tell your friends all about us. You can find more episodes of the Flippin' Off podcast on Apple Podcast, Spotify, Google Podcast, Stitcher or wherever else you'd like to listen to awesome podcasts like this. If you like what you heard we'd really appreciate it if you follow us on Facebook and Instagram and tell us the stories that you'd like to hear.
Tim Jackson is our Senior Producer. Luke Jackson is our Editor. Josh Mauldin is our producer. Sound design by Frequency Factory. Our executive producer is Mind & Mill. This was all created by Dave Boswell for New Wealth Advisors Club.
Melina: I'm Melina Boswell, your host of the Flippin' Off podcast. I really hope you enjoyed it. If you did, we'd love for you to subscribe. Give us a five-star rating and tell your friends all about us. You can find more episodes of the Flippin' Off podcast on Apple Podcasts, Spotify, Google Podcasts, Stitcher, or wherever else you like to listen to awesome podcasts like this.
If you like what you've heard, we'd really appreciate it if you follow us on Facebook and Instagram and tell us the stories that you'd like to hear. Tim Jackson is our senior producer. Luke Jackson is our editor. Brothers. Josh Mauldin is our producer. Sound design by Frequency Factory. Our executive producer is Mind and Mill. This was all created by Dave Boswell for New Wealth Advisors Club.