October 14, 2020

Episode – 12

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Barry Habib – The Deal Flow Show - October 14, 2020 Reply

[…] Barry HabibEpisode #12 : Barry Habib Entrepreneur, Mortgage Expert, Broadway Producer, and Consummate Dealmaker […]

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Barry Habib Entrepreneur, Mortgage Expert, Broadway Producer, and Consummate Dealmaker


Description:
Barry Habib is an American Entrepreneur and frequent Media resource for his Mortgage and Housing expertise. Barry has had a long tenure with monthly appearances on CNBC and FOX.

Barry has had many successful businesses that he has founded, grown, and sold. This includes Mortgage Market Guide, Healthcare Imaging Solutions, and Certified Mortgage Associates. Barry personally originated over $2 Billion dollars in mortgage loan production over his career. He is also the Lead Producer and Managing Partner for “Rock of Ages” – a Broadway musical theatrical production, which was also released as a major film starring Tom Cruise. Barry also plays the part of the record producer in the movie.

What you’ll learn from this episode:
– Skill sets necessary to be a successful entrepreneur
– Current outlook of the real estate market
– Barry’s tips and secrets for great deal execution

Connect with Barry:
LinkedIn

Full Transcript:

JP Maroney:

Greetings and welcome to another episode of the deal flow show. I’m JP Maroney, your host, along with my cohost, mr. Paul Nicoline from here at Harbor city capital. And we’ve got a great guest on the show. So I’m going to let you introduce this guest. You’ve been talking about his background, uh, introduce him, his company, and then let’s jump into our questions today. Yeah, well, he’s got a great story. His name is Barry Habib. Welcome back.

Barry Habib:

So nice to be with you currently

JP Maroney:

Of MBS highway. Let’s start on, uh, your background, give us a little of your background and, um, it will start from there.

Barry Habib:

Yeah, I’ll try and give you the elevator speech, but it’s pretty extensive. Uh, so I have been in the mortgage and real estate industry for a long time, but not just there. I had a good career in the mortgage business where I was top producer in the country for a couple of years. And the entire industry 2019 was named mortgage professional of the year. Um, had a mortgage company that I built and sold, uh, in 1999, then had an idea to transform the mortgage industry by alleviating a point of friction and teaching them the marketplace and built a company sold bad in 2007 called mortgage market guide. Uh, and then after I’d done that, believe it or not did some acting, but in nine different movies, uh, when I was a little younger and probably somewhat decent looking. And then, um, since then had a medical imaging business that I built and sold, which again, alleviated points of friction and I was where people would have hopefully, um, people never have to go to get scans for anything.

Barry Habib:

Hopefully everybody’s in good shape, but when people would go to get scans and maybe people can relate to this, you know, the tech knows what’s going on. However, from our perspective, you know, the anxiety builds up. So it’s like, why do people have to go through this? So actually I had a radiologist there and the concept was so revolutionary because as soon as the scan was over and you got dressed, you either got great news and went home feeling great. And if it wasn’t such great news, at least you had a plan and that’s what people want. So, uh, grew that to three offices and then sold that. And then one of the things I did in the interim, a lot of these were parallel paths was create a Broadway show called rock of ages, which has been pretty famous. It’s been around the world as a movie with Tom cruise.

Barry Habib:

I was in the movie, I played the record producer and that was an enormous success and enormous amount of joy for me, five Tony’s later. Um, and then, uh, all along have been a professional speaker in the financial markets and a motivation for the last goodness gracious 26 years. And I did on my own show on CNBC for 13 years. And my most recent endeavors are a company called MBS highway, which we have grown. We have, uh, 25, 26,000 mortgage professionals in the U S the United States that pay for subscriptions to our service, where we teach them the financial markets, advise them what to do. It’s very, very diverse. In addition to that, we have a certification called certified mortgage advisor where the things that kind of, I learned through my career, we teach to mortgage professionals as well. I’ve got a book coming out, October 27th, called money in the streets, which is a very wonderful motivational book that helps you understand how to identify and take advantage of opportunities. So there’s quite a bit there. I’m sorry for the lengthy background, but I guess I’m old cause I’ve done a lot of stuff.

JP Maroney:

No, it, it, you know, what’s funny yet what we find consistent across the board is deal makers have that persuasion skill at some level of often said to entrepreneurs. And every once in a while you find an operator engineer, technical entrepreneur, but a lot of entrepreneurs are the ones that are forced to go out and do the selling, right? And, and it’s, that’s even one of the toughest roles to replace. I tell people often a quote that I heard years ago is that sales is the only profession where you get paid exactly what you’re worth. And, um, you, you did a good bit of sales training. Talk a little bit about what you bring to the table when you’re in the middle of whether it’s working on a movie deal, working on a, the next book deal, working on putting a team together, how much of your persuasion skills go into that and how do you utilize that tool in the deal making process?

Barry Habib:

So funny because of my book, I talk about sales being very fair. You know, I was pretty decent athlete when I was younger and still okay. But a lot older now, things don’t work exactly the same, but I was, I was good athlete in high school. When I got to college, though, people seem to be passing me by, at a faster rate than I was able to accelerate. I didn’t make the cut because of lack of drive or desire. Just God did not give me as much skill for jumping high or being as fast as some of the other players. And you know, that’s the thing I love about sales. Sales is fair. It doesn’t matter if somebody is faster than you, stronger than you can jump higher than you really doesn’t matter. You need one thing to be successful in sales and that’s this, you just need heart.

Barry Habib:

How bad do you want it? Are you willing to commit to it? Because what you have to do is you have to create value. Sometimes you say persuasive skills, some people think that’s wrong. They think that you’re trying to be manipulative. So being persuasive is different because what you want to try and do is you want to turn on the TV set in somebody’s brain and show them what’s possible. And then logically explain a path to get there. That’s just being a good communicator. So I think that communication is much more important than being persuasive. Most of us, when we communicate, we make the big mistake of forgetting that it took us a journey to get to where we are to formulate an idea. And we try and implant that in somebody else’s brain. It doesn’t make sense. We really need to do is better fork. We hold their hand, take them through that journey and show them how we at that and why it makes sense and how it could be beneficial to them. And if you design things like that, then it might appear to be persuasive. But what you’re really doing is you’re really being extremely logical and you’re showing people how you can do good for them and how you can benefit them and how you can help others. And by helping others, we wound up receiving more than we’ve ever imagined.

JP Maroney:

That’s good. You use the word value. I often say that when the, when the benefit received is greater than the price paid value is perceived. And anytime you have value, you have an opportunity, as you said to, to let someone really not even persuade them, but allow them to persuade themselves. Uh, I think it was Jeffrey. Gitomer said people hate to be sold, but they love to buy. And if you can show people a path and a way to solve a problem, obviously it’s a, it’s a great way to lead them, I guess, to a conclusion.

Barry Habib:

Yeah, JP is it’s it’s it’s um, I call it alleviating points of friction. Um, but, um, you’re, you’re a hundred percent, right? When we, when we discuss things like this and, and we, we talk about, uh, helping individuals see that, or, or turning on the TV set in their brain. This is what’s, what’s really important when you can, when you can do that and not just create value, but here’s the real secret. The real secret is to gain trust. Whether it’s in a relationship, that’s your most significant person, your significant other, or with your kids, or certainly in business. So here’s the secret. The secret is after you’ve put a deal together and everything’s done, give them more than what you agreed to. When you start to do that, you build enormous amounts of trust and Goodwill. Now, most people just trying to game it and get what they can don’t do that, put your deal together and then give more when you’re not obligated to, I’ve been employing people for 39 years started very, very early on in self employed.

Barry Habib:

Since I’m 21 years old, employing people never had any turnover. You know why? No one’s ever asked me for an increase because I want to make sure they know I’ve got their back and give it to them before it’s asked. See if you say to somebody, Hey, look, I know you’re doing well. I’m going to do this for you. Without them asking then trust is established. People don’t ever leave you because they don’t get that anywhere else. I mentioned relieving points of friction. So I talked about that in the mortgage business. I talked about that in healthcare, in rock of ages, one way of many ways that we alleviate the points of friction was kind of funny is that, you know, I would see people come into the show, rock of ages on Broadway and you know, Manhattan traffic could be tough. So people would get there a little bit, a little bit late still before the show began and they’d want a nice cocktail, cocktails are not cheap. So it’d be like 18 bucks for a cocktail. They’d wait online to get it. So now time is passing. By the time they get up there, the time they got it, the flights would flickered shows about to begin. And you are not allowed on Broadway at the time to bring your drink to the seats. And I’d watch these people nicely dressed, wanting to have a good time.

Barry Habib:

Why do you have to do that? So I went to the theater owners and I said, let’s allow people to drink. And the seats, they said, no, why not? I said, because we’ve never done that before. Well, if you know me, that’s not an acceptable answer. So it took me awhile, but I was the pioneer I became, I negotiated the first deal in the history of Broadway to allow drinking in the seats. And now all of them do it, but it makes for a much more relaxed and enjoyable experience. So we always want to do is alleviate points of friction in my book, money in the streets. What it actually does is it trains you to be able to see all of the opportunities that are out there and be able to, once you identify the opportunities, problem is not necessarily taking advantage of them. That’s a whole separate issue, but you can’t even reach that point unless you’ve identified them. So it’s really a skill that can be honed. If you understand how to identify opportunities,

Paul Nicolini:

Barry, you’ve built your mortgage mortgage market guide on your blood, sweat, and tears. And I’m sure that was your baby at the time. Right? Take us through the experience of you selling it. And how was that process?

Barry Habib: 

I’ll do mortgage market. The reason I sold it was just a different, um, a different, uh, set of reasons because I did not like what was going on in the real estate market and the mortgage market. When I sold that, uh, saw a change happening in 2006 and the industry just didn’t make sense to me. And I knew it was going to end badly. So I thought it would be a good time. And, you know, everybody thought I was nuts. You know, I remember going on CNBC and telling people that, you know, that they’ve gotta be careful, things are gonna change. Don’t do these interest only Negan loans. I would get actual hate mail for people. So what do you mean? They’re great. I just didn’t like them. And you know, I eat my own home cooking. So I thought that it would be a good idea.

Barry Habib:

We actually sold the business in a bidding war and literally literally six weeks afterwards, the financial crisis started to unfold. Now I’m not that good. I didn’t know it was gonna happen six weeks before, but I knew that something was up and I knew that this was an unstable environment. That’s why I sold that business. Now, other businesses that have sold for, for different reasons and to capitalize on it. But many times, if you’re an entrepreneur, you’ve got a business that you’re thinking of selling, I’ve sold other businesses and just closed on a very big one, literally last week. The reason that I did that, and the reason why you should consider doing that is because when you take a look and you say, okay, if I’m going to be able to, to have a liquidity event, maybe I don’t sell the whole thing, but take some liquidity off the table.

Barry Habib:

Just think about that amount of liquidity that you’re able to monetize. How long would it actually take you build that or to save that, you know, just to, just to, if somebody makes, I’m going to just use some round numbers here, okay. If somebody makes a million dollars a year, that’s a lot of money, but if you a million bucks a year, by the time you’re done with taxes, you’ve got like 500,000. Now, thinking about all your expenses, all of the expenses that you have that constitute earning the lifestyle that you want might be three or $400,000 a year. Because if you’re making a million dollars a year, you’re going to have a pretty nice lifestyle, right? You’re going to fit the role. Well, what does that mean? Maybe you could save a hundred thousand dollars a year if you’re super frugal and you deny yourself, maybe you could save $200,000 a year.

Barry Habib:

Now think about if you had a business that enabled you to get liquidity event of let’s just say $10 million right now you do have to pay taxes on that. But after you’re done with your capital gains portion of the tax on that, which we hope sticks around through this selection period, right? So if that were to be, then you should think about it. If you’re an entrepreneur, how many years of savings would it take me to amass that amount? So whatever it is, 7 million bucks, 6 million bucks. How many years of having to save a hundred or $200,000, would it take to get a lump sum of six or $7 million, take your lifetime. And that’s why, if you’re an entrepreneur, you may want to try and think about that. Now there’s other factors to cake. It’s not that black and white I’m being overly simplistic, but you have to have a business.

Barry Habib:

That’s not necessarily immature. It needs to have some maturity, but not too mature because you need to be able to leave enough meat on the bone for the next buyer to be incented, to want to do this, to see how it can grow. And then if you get the next bite of the Apple and you do everything right, then the next bite of the Apple with the help of a partner that can help you get there becomes even greater than the first bite. So that’s what entrepreneurs, in my opinion, should be looking at it as a liquidity event.

JP Maroney:

I want to talk a little bit about the opposite of success in just a moment, but if you’re watching or listening to this episode of the deal flow show, you can get access to our previous episodes, our archives, as well as following subscribe us to get access to future episodes. By going to the deal flow, show.com the deal flow show.com. So Barry, um, you know, we both know that someone who has success sometimes multiple success events also has had their share of what I call learning experiences. And it could be failures, setbacks, things that you control, the things you don’t control. You talked about the mortgage crisis, obviously right now, we’re all living proof of what has happened with Krone, a virus COVID-19 and the impact of that on our economy and businesses. But what is your personal process for dealing with a setback, a failure, a reset, a learning opportunity. How do you go through? You talked about heart and sales. How do you go through the mental game? How do you keep the heart ride? How do you put together the pieces? How do you put, you know, keep the logic right? And get back up and go again. Anytime you have those, those times where you’re not having the success that you thought you would, all of us are gonna

Barry Habib: 

Suffer. We all have suffered. We all will suffer. Okay? We all, well, this there’s no discrimination there. Every single one of us will suffer. Whatever that heartache is, and businesses are going to have some good times are going to have some tough times. But the one thing that you can depend on is you can depend on the fact that you’re going to have some tough times. But the other thing that you can depend on is you can depend on being adaptable and being resourceful. And the vast majority of people fail, because what they do is they encounter resistance and they say, Oh shit, I can’t do it. Right. What you really need to do during those times is be resourceful. You need to find a way, this is what you need to do. Listen, we’re designed this way. We’re designed this way. Do you know that your, your blood flow, even inside your own body, if a vein gets cut, do you know that your body finds other ways to get the blood around it?

Barry Habib:

And that’s essentially what you have to do, do what your body is born to do. Find ways around it. Be adaptable, be resourceful. When you encounter a setback, when you encounter something that is going to be a difficulty, understand that this is just part of the deal. It doesn’t always work out perfect. It’s not, it never does. So when you do know that that’s part of the deal and what your job as an entrepreneur is to do two things. One anticipate what the weaknesses are going to be, anticipate that, and to be resourceful and adaptable, overcome those. Now everybody should be looking at their business as if they were your competitor. Here’s what I would do. And here’s what I do every day. I look at my business and I imagine I’m a competitor. And I’m saying, how do I attack that business? What’s their vulnerability.

Barry Habib:

What’s their weakness. What’s an area that I can beat them. And then once you’re honest enough with yourself and you look at it from the eyes of your most fierce competitor and see how they can beat you, then it opens your eyes to say, here’s what I need to be doing better. Here’s what I need to anticipate. You’ll still have setbacks, but there’ll be far, fewer and far less severe. If you’ve already done the work to shore up those holes before they happen, the problem is, is most of us, we believe our own press clippings. And we’re out there thinking how great we are. You know, when you get a tailwind, we believe it’s ourselves. Instead of thinking about the fact that, Hey, maybe we got a little bit of a tailwind here. Let’s be wise, let’s be smart. I’ll also bring up a point that you said on our pre-call that what’s your blood type again.

Barry Habib:

So listen, I’m a very positive person. Everybody says, bear, you are so proud because I do. I think here’s one common thread, one common thread that we know factually amongst successful people is this it’s optimism. I would tell you that it is one of the most important character traits. If you find yourself lacking optimism, then it’s a skill. You need to focus on it. I start my day every morning with prayer and gratitude. I literally say out loud, all of the things that I am grateful for, because it’s sets you in a different place in your mind, every single day. And people joke with me as a barrier, always so positive. I said, well, guess what? There’s a true story. My blood type can’t make this up. It’s be positive. Okay. So, so I, I’m going to say to you now, it’s not always easy to be positive.

Barry Habib:

Believe me. That’s that’s, that would be unnatural. But for the most part, if you can remain grateful, if you can remain grounded in thinking about while we have problems, how many people are out there that would beg to have our set of problems. Right? Think about that. Think about all the things you’ve got going for you, all the good that you have, it just refocuses you and get you out of the negative mindset and then allows you to truly address what’s the cause of the setback and how can I overcome it and have the confidence and belief in yourself that have been here before I’ve gotten through it before I’m going to be able to overcome it again.

JP Maroney:

Good point. And it is about perspective. We were driving back from Miami the other day and actually in the evening. And there was something up ahead. We didn’t know what it was, but we came to a halt to sit and literally on 95, no movement. The finally it starts to creep a little bit, sit still creep a little bit. And about 20 minutes into this, I’m like, Oh my God, I got it. I’m about to jump over into the HOV lane, you know, crossover and just drive on that side. And we got closer, got closer. Finally, you see the flashing lights. And then we got up next to them and I’m grumbling to my wife the whole time arena. So we got up next to them and there were three or four cars just completely torn to pieces. One truck turned around backwards. The front was completely missing. I said, well, I guess there is somebody having a worse night than me, you know? And it’s all about perspective. So you had a question for him about it, about the deal process. I did. Can you give us some on our audience, some tips on how do you prepare for a deal and data book deal or a movie deal or, or any of your dealings in business?

Barry Habib:

Preparation is really important. I prepare, you know, I prepare, you know, if you want to grow, you have to measure, right. So, so do you know your numbers? Do you know your statistics? Are you being, are you looking at what your history is, what your trajectory is in anything that you do? So if you’re preparing to sell a company, you know, what you want to do is you want to think about that. Well, in advance, you know, where are you going? What are you anticipating when would be the right time? If you’re looking to put together any type of a deal, it’s really important in, in any negotiation to not look for win, win, but look for something that is good communication so that you can express and understand not only what your objectives are and make sure you stay true to your objectives, but what would be beneficial for your respected adversary on the opposite side of the deal.

Barry Habib:

So it’s very important in any negotiation to understand that you need to be prepared with what your objectives are. And you also, so if you should almost do this before you make a phone call to somebody, most people make a phone call and they just wing it. How much more effective would you be before you made an important call like that? If you had a list of things that you wanted to accomplish on that phone call, just take the extra three or four or five or 10 minutes to do that prior to getting on the phone or on the zoom today or whatever it is, or meeting how much more effective would you be just by what that one little thing. And then when you’re in a situation where, when you’re in a negotiation, please understand that in negotiation, neediness is a killer. It’s okay to want, but it’s not okay to need.

Barry Habib:

Neediness traps. You neediness is, is, is all the things that will hurt you in any kind of deal in any kind of negotiation. The strongest negotiator is always the one that could get up and walk away from the table, always. So the second you start to show need, your adversary will smell it. In addition to that, they will trust you less, not more dropping price causes people to trust you less, not more. Why don’t you give me that lowest price to begin with? What else? Where’s the bottom. Now, now it opens up a bottomless pit. If you, if that was your best price before, and now you came down to here, why can’t you come down to here? So you need to be very careful about dropping price without getting something in return for that to show that you’re truly in a negotiation, there’s so much to putting deals together effectively. Anybody can put a deal together, but how effective are you in putting that deal? Just remember that, as I mentioned, neediness is really the killer understand going in that if you want to be a great negotiator, you have to be willing to walk away from the deal that you’re negotiating before you put it together.

JP Maroney:

That’s huge. I agree. A hundred percent. I know you’ve got a question over there. I can tell by the way, you’re moving around, but if you’re watching or listening to this episode of the deal flow show, you can get access to our archives, our previous episodes, and also follow in, subscribe us, uh, to us to get future episodes by going to the deal flow show.com.

Barry Habib:

Got it guys to that end. Let me just give you one. I’m going to give you a little treat here. Okay? So I’m going to let you in on a secret, we all have people that are in any type of deal or negotiation or sale are being unresponsive. Heck it could be a contractor on your home. Okay? I’m going to give you a secret here and you’re gonna want to write this down. Trust me. It will be life changing for you. So if you want to get people who are unresponsive to respond to you, I’m going to give you a three sentence script. Trust me, this will be a magic trick. I’ve taught this to people. People have told me this has been life changing for them. So what I’m about to do for you is give you a magic trick that will totally help you and change your, if somebody is being unresponsive and you want them to be responsive, this is a simple three sentences.

Barry Habib:

Do not change it. Do not alter it. Say it exactly as I’m about to tell you I’ve left several messages for you and still have not heard back. That’s the first sentence I’ve left several messages for you and still have not heard back. Second sentence. If interest is cooled, I completely understand. And it won’t hurt my feelings. Third sentence. Just let me know either way. So I know how to proceed. Believe me. When I tell you this is a magic trick, when you do it now, not only does this work for customers for contractors, business, it’ll work in relationships too. I’m telling you it will. Okay. So here we go. One more time. I’ve left several messages for you and still have not heard back. If interest is cool, I completely understand. And it won’t hurt my feelings. Just let me know either way. So I know how to proceed. You can put that in an email. You can put that into text. You can leave it in a voicemail and watch your phone ring. Watch your response, come back because I guarantee you, the unresponsible respond to that. Why? Because there is no need.

JP Maroney:

And I don’t know if you train any kind of jujitsu or anything in Brazilian jujitsu. There’s a thing where you push, pull. And as soon as you’re pushed, they brakes for that. And then you pull and it takes them off. And you’re talking about you’re pulling back. They lean in you, then you push back in. I love it. Nice move. Now, ask your question. Well, I actually he’s, he’s had so many great points, but tell us about the red flags you see during this process. If you see red flags, what are they and tell us about that in any of your deals.

Barry Habib:

So again, you know, in a process, um, integrity is the most important thing because really what the bottom line of it is, is it’s just trust. Um, when everything’s great, everybody’s great. You really tell somebody’s character. When you see adversity, watch how they respond. Because if you’re going to enter into a deal, what you really want is you want a teammate. You don’t want somebody. When things get a little shaky to turn against you, to try and take from you. You want somebody who’s going to be committed and with you. So watch for the red flags. When you reach certain levels of adversity, are they staying in this? Are they trying to gain? You take advantage of you. Integrity is everything in a deal and trust is the most important thing. So, uh, watch neediness as well. See neediness. We talked about us displaying neediness, which is what kills deals.

Barry Habib:

But if somebody else becomes needy, take that as a red flag, because when someone’s displaying neediness, it’s a sign of desperation. And when people are desperate, they will do anything to accomplish the goal. And I don’t mean that in a good way, which means they’ll say anything to you in order to get what they want, whether they will fulfill that or not. And our brain already knows this. This is why. If we try and sell an act needy, the customer’s back off because they say, what are you so desperate for? So when you say something that they don’t necessarily believe you because you sound desperate and therefore they believe that you’re just telling them whatever it’s going to take to close the deal. A great salesperson tells the customer everything bad about the deal. Look, if you want a life, we all want to be magnetic, right?

Barry Habib:

We all want to magnetism is so critical. You know, you look at some people and you say, man, that person is so magnetic. I wish I had more of that. Magnet. Someone to tell you the secrets magnetism, the secret of magnetism is do two things. One is you have to be more educated and how help them learn something. If you can help them learn something and show them and people make their decision very quickly. First five or 10 minutes, you get on the phone, you’ve got to show your knowledge, but you can’t give what you don’t have. So what you need to do is you need to put in the hard work. That’s the good news. The good news is success takes hard work, and you should be happy about that because otherwise everybody would do it. And people would steal your business. The fact that you have the heart, you have the desire.

Barry Habib:

And obviously if you’re watching this, you already have that because you could be doing something else. But what are you doing? You watching this because you’d like to learn something to help you grow, to help you get better. So you already have that in you, it’s in your DNA. Otherwise you wouldn’t be watching this. Use that to your advantage. Be a sponge, learn as much as you can push yourself, be the very best version of yourself. And if you do that, then you have something to offer. And by the way, I want to talk about competence in a minute. But first, the other aspect of it is tell that customer, everything bad about the transaction. I know it sounds crazy, but what you want to do is you don’t want to look at that person as a customer. That’s got a dollar sign as a target on their back.

Barry Habib:

You want to think of them as if they were your mom, your dad, your kid, your best friend. And instead of being on opposite ends of the table, you want them right here next to you, looking at the deal together and say, here’s what I watch out for. Here’s why you should, what you should be careful of. Maybe this isn’t good for you to do it this way. A change to the whole deck, that overcomes price that overcomes everything. And doesn’t just work in business in relationships too. You want to be trusted. Tell him everything bad, be vulnerable. It takes a lot of confidence to do that. You know, in South America, they’ve got these spider monkeys that are really, really difficult to capture, but Hunter’s became very ingenious. And what they did was these nocturnal animals. They only come in at night. They take these heavy boxes that are ventilated with the monkeys, favorite food.

Barry Habib:

There’s no way in except for a small slit in the side of the box, monkeys are smart. They feel around, they find a way and they get their hand. Did they get the food? And then they can’t get their fist out because they’re holding onto the food and their clenched fist. Can’t fit through the slit. The hunters just come and pick them up. Now the monkey can be free and have everything they want. If they just let go and make it up, the freedom they want. But because they won’t let go, they trap themselves. And in life we have to think about is how many times do we trap ourselves? Because we’re afraid to let go. We’re afraid of losing. And that prevents us from winning. You know, I learned how to juggle am I there’s such thing as a juggling instructor. Okay. First thing they taught me to do is let the balls drop.

Barry Habib:

I’m like, why the heck would I want to let the balls drop? And they said, Barry, because if you try and catch everyone, you will never have confidence enough. And you’ll never be able to be relaxed enough to juggle effectively. And it’s like that in life. We’re not going to get every deal except that, that you could want to get every deal, but you’re not going to. And I mentioned competence before. Competence is a critical element. Isn’t confidence. So great. When you say not cockiness, but confidence. It doesn’t that draw you to someone. Who’s got competence. It’s very attractive and you become more competent. Be the very best version of yourself right now. That’s the great thing about it. What are you doing every day to make you the best version of yourself? The last conversation you have with a client was that the best conversation that you’ve had is the next one going to be better.

Barry Habib:

Are you constantly striving? The conversation you had with your kids is that, that best interaction that you’ve had yet, are you dealing with your significant other in the best way, where you’re proud of yourself and you know that this is the best version of yourself. You’re giving the best version of yourself to the world. If you’re doing that, that gives you unbelievable confidence that, Hey, no, I’m not like I was 10 years ago. I was good. 20 years old has got three of the I’m the best I am right now. And that inner confidence will draw so many people to you. Whether you’re trying to sell a business, we’re trying to sell a size of steak, knives, whatever you’re trying to do, or trying to win over somebody’s heart. That kind of confidence is extraordinarily powerful and magnetic.

JP Maroney:

I guarantee you I’ve been there. You’ve been there. You’ve been there. Everyone listening to this audience has walked into and we’ll walk into a selling environment or a deal where they really do need the deal. And so how do you prepare mentally for that? What are, what are some of the things you can do in that preparation process to make sure that you’re walking in with that level of confidence that I could walk away, but that gun, I know I need this deal. How do you present that, that front in an authentic way?

Barry Habib:

So I remind myself that I want the deal, but I don’t need the deal. You know what I need any air food, water, shelter, maybe some love, okay. So that’s what I need. I don’t need that transaction because the sun’s going to come up tomorrow and there’ll be another one that’ll be out there. Maybe it’d be harder. Maybe it’d be less exciting, but they will be better ones as well. Very rarely do we get this deal, that the best deal of our life, that we’re in the midst of, okay. We have many, many, many, many deals who knows what the best deal of our life is thinking about five years ago, eight years ago, when you thought was the best deal of your life, probably as dwarf now, by things that have occurred for all of us, right? So you don’t need it. You want it, and it’s okay to want it.

Barry Habib:

So the most important thing that you have to remember is that if you have that mindset, then what you’re really able to do is take the approach of what is best for that client. What is best for that loved person that you’re trying to talk to you for your kid, your significant other, the heart. You’re trying to win. Think about it from their perspective and think about what’s important to them and how you can help them. How can I best serve them? What can I do that would be adding value to them? And by doing that, then it becomes a lot easier for them to root for us as well and want to make that happen for us too. So it’s that type of a mindset, but it all starts with not being needy. Cause if I’m just concerned about what I need and what’s going to do for me, I’m gonna have a much more difficult time trying to put something together with that person who’s across the table, in whatever context it is.

Barry Habib:

But if I’m thinking about how I can make a positive difference and impact for that individual across the table and how I’m addressing their concerns and how I’m vulnerable and how I’m not afraid to put their wellbeing in front of my commission. Well, that’s a different world. And not only do you get that deal, but you get that deal forever because they’re gonna keep coming back to you. And then on top of that, they’re going to give you every single person that they know that will come to you. That’s longterm thinking. The problem is most of us think short term. So if we get out of the short term mindset and start to think longterm, the rewards are incredible. Good answer.

Paul Nicolini:

You mentioned, you just mentioned longterm and certainly people have certain goals short term or longterm. Tell us about some of your goals and maybe some that you haven’t achieved yet this far and maybe a where you’re looking down the road.

Barry Habib:

So I just had some, some really amazing longterm goals just culminate, you know, that takes it’s years in the making that just culminated. So, you know, it’s always important to enjoy them, but it’s always important to continue to think ahead. So I’ve got a book that’s going to be released this month, just closed on some very, very major transactions with our business, uh, and, and inside of our business and new businesses that I’ve launched. So they’ve all kind of come together. But my goal now longterm is to take the new arrangements that we have and to build them into grow them both during internal growth, during acquisition and creativity, you know, creativity is something we don’t talk enough about. We all have this amazing creativity. Now I grew up extraordinarily poor. So my dad was 57. My mom was 40. When we were born, they were immigrants, uh, barely spoke, but really didn’t speak the language.

Barry Habib:

I’m first generation in my family here in the United States. And my dad passed away when I was young. My mom worked in a sweat shop, which is where they make dresses and it’s just tough conditions. So I know what it’s like to be there. And when, when I was growing up, you know, one of the reasons why I wrote the book is you don’t. My mom would, would talk to me about stories about how people that would come to America would hear that America is such a rich country, there’s money in the streets. And that’s why I wrote the book called money in the streets. Well, when we take a look at years later, before my mom passed, I remember sitting down with her and saying, mom, you know, you were right. There really is money in the streets because I learned how to identify opportunities.

Barry Habib:

I learned how to do good with them and build them into something. And when we take a look now at goals that we have going forward, creativity is so important. We all have it. Mine was fostered because I didn’t have any toys. So I like invent games, do that at a young age. But when you come up against obstacles, we talked about adaptability. Creativity will help you. And in building your business, many of us stay stagnant and we don’t utilize the creativity that we have to push ourselves when we’re successful. When you’re successful, we tend to just, you know, put it on cruise control. That’s the time to use that platform and that leverage of being successful to then push it to the next level. That’s how you stay ahead of your competition. Find where the points of friction are constantly push yourself to take a good situation, a great situation, and take it a step higher, make it even greater, never be satisfied and always try to improve through creativity.

JP Maroney:

Very cool. Before, uh, we get finished chair. I want you to talk just briefly about the book and be, have a cover or a sample or something. You can show us what it looks like.

Barry Habib:

Well, right on Amazon it’s money in the streets. You can go there. Amazon Barnes and noble, it’s going to be released October 27th. And, uh, and the book is one that as I mentioned to you, so by the way, Tony Robbins, who doesn’t, doesn’t typically give endorsements. Tony wrote this glowing endorsement on the book because he really believes will help people. Uh, Randy Zuckerberg, who is Mark Zuckerberg, sister, she created and invented Facebook live. She wrote the forward and the most beautiful forward, and the book will truly help you. If you’re going through a tough time, it’ll help you get through it. If you’re going through a great time and help you it. But what it really will do is teach you lots of lessons that will help you identify first opportunities and then how to maximize them. And then most importantly, how to do good with them because in life there’s a lot of successful people that are very unhappy.

Barry Habib:

And while we’re talking to you about success and many of you are successful, and I hope you’re happy all of you, but you have to remember that while at least in my humble opinion, in order to be successful and happy, you need not just achievement success, but you need fulfillment and fulfillment usually comes from helping others. So if you can, along the way, help lift others, inspire others, do good for others. That’s what gives you the fulfillment, which brings happiness along with successful achievement of goals. If you have the marriage of those two and you’re going to be, you’re going to be pretty happy and you can’t help, but being successful because one builds on the other.

JP Maroney:

If, uh, other people see this, they think about opportunities that might be a fit. What kind of people would you like to connect with from our show, people that have been guest on the show, um, what kind of people would you like to have reaching out to you as a result of seeing this or hearing this

Barry Habib:

People that want to help others, people that understand that life’s about giving and not receiving people that work very, very hard to continuously improve that believe in themselves that want to put the hard work yet people that are into it that are motivated, that are spiritual, that are grateful and have humility. That’s the type of people I love connecting with because those individuals, what I call it is I say they get it. Not everybody gets it, but when you find someone who gets it, stay close to them, because those are the relationships that will be most enjoyable and most meaningful for you. So like both of you, gentlemen, you guys get it,

JP Maroney:

Barry hubby, um, as we finish up, what is the best way for people to reach out to you, email, phone website, whatever your choice.

Barry Habib:

So a MBS highway.com is, is the typical one, but you could email me. My email’s real easy. It’s barry@barryhabib.com. So easy, so simple. Um, that’s, that’s probably the best way to reach out to me.

JP Maroney:

Excellent. It’s good to have you on Barry Habib, MBS highway on behalf of mr. Paul Nicholina I think we covered it today. This is good stuff, inspiring a different angle, a different angle. And, and I’ll tell you what I look at when you go to the deal table, having that arsenal of tools. And it’s not always those sharp edges. I liked some of the stuff that you talked about today and guarantee you, some of our audience learned from that. Listen, if you are watching or hearing this episode of the deal flow show, you can get access to our previous episodes, subscribe and follow us by going to the deal flow show.com. If you think you’d be a great guest, reach out to us through the website. If you know somebody who’d be a great guest, you can suggest them to us in social media, LinkedIn, et cetera. And, uh, also if you’re like Barry over there going, I need somebody you’re back in touch with us and let us know who would be a great guest on the show. We look forward to being a part of your dealmaking process in the future. I’m JP Maroney, mr. Paul Nicoline, take care. Everyone. We’ll see again. In another episode of the deal flow show, all right,

October 14, 2020

Barry Habib Entrepreneur, Mortgage Expert, Broadway Producer, and Consummate Dealmaker


Description:
Barry Habib is an American Entrepreneur and frequent Media resource for his Mortgage and Housing expertise. Barry has had a long tenure with monthly appearances on CNBC and FOX.

Barry has had many successful businesses that he has founded, grown, and sold. This includes Mortgage Market Guide, Healthcare Imaging Solutions, and Certified Mortgage Associates. Barry personally originated over $2 Billion dollars in mortgage loan production over his career. He is also the Lead Producer and Managing Partner for “Rock of Ages” – a Broadway musical theatrical production, which was also released as a major film starring Tom Cruise. Barry also plays the part of the record producer in the movie.

What you’ll learn from this episode:
– Skill sets necessary to be a successful entrepreneur
– Current outlook of the real estate market
– Barry’s tips and secrets for great deal execution

Connect with Barry:
LinkedIn

Full Transcript:

JP Maroney:

Greetings and welcome to another episode of the deal flow show. I’m JP Maroney, your host, along with my cohost, mr. Paul Nicoline from here at Harbor city capital. And we’ve got a great guest on the show. So I’m going to let you introduce this guest. You’ve been talking about his background, uh, introduce him, his company, and then let’s jump into our questions today. Yeah, well, he’s got a great story. His name is Barry Habib. Welcome back.

Barry Habib:

So nice to be with you currently

JP Maroney:

Of MBS highway. Let’s start on, uh, your background, give us a little of your background and, um, it will start from there.

Barry Habib:

Yeah, I’ll try and give you the elevator speech, but it’s pretty extensive. Uh, so I have been in the mortgage and real estate industry for a long time, but not just there. I had a good career in the mortgage business where I was top producer in the country for a couple of years. And the entire industry 2019 was named mortgage professional of the year. Um, had a mortgage company that I built and sold, uh, in 1999, then had an idea to transform the mortgage industry by alleviating a point of friction and teaching them the marketplace and built a company sold bad in 2007 called mortgage market guide. Uh, and then after I’d done that, believe it or not did some acting, but in nine different movies, uh, when I was a little younger and probably somewhat decent looking. And then, um, since then had a medical imaging business that I built and sold, which again, alleviated points of friction and I was where people would have hopefully, um, people never have to go to get scans for anything.

Barry Habib:

Hopefully everybody’s in good shape, but when people would go to get scans and maybe people can relate to this, you know, the tech knows what’s going on. However, from our perspective, you know, the anxiety builds up. So it’s like, why do people have to go through this? So actually I had a radiologist there and the concept was so revolutionary because as soon as the scan was over and you got dressed, you either got great news and went home feeling great. And if it wasn’t such great news, at least you had a plan and that’s what people want. So, uh, grew that to three offices and then sold that. And then one of the things I did in the interim, a lot of these were parallel paths was create a Broadway show called rock of ages, which has been pretty famous. It’s been around the world as a movie with Tom cruise.

Barry Habib:

I was in the movie, I played the record producer and that was an enormous success and enormous amount of joy for me, five Tony’s later. Um, and then, uh, all along have been a professional speaker in the financial markets and a motivation for the last goodness gracious 26 years. And I did on my own show on CNBC for 13 years. And my most recent endeavors are a company called MBS highway, which we have grown. We have, uh, 25, 26,000 mortgage professionals in the U S the United States that pay for subscriptions to our service, where we teach them the financial markets, advise them what to do. It’s very, very diverse. In addition to that, we have a certification called certified mortgage advisor where the things that kind of, I learned through my career, we teach to mortgage professionals as well. I’ve got a book coming out, October 27th, called money in the streets, which is a very wonderful motivational book that helps you understand how to identify and take advantage of opportunities. So there’s quite a bit there. I’m sorry for the lengthy background, but I guess I’m old cause I’ve done a lot of stuff.

JP Maroney:

No, it, it, you know, what’s funny yet what we find consistent across the board is deal makers have that persuasion skill at some level of often said to entrepreneurs. And every once in a while you find an operator engineer, technical entrepreneur, but a lot of entrepreneurs are the ones that are forced to go out and do the selling, right? And, and it’s, that’s even one of the toughest roles to replace. I tell people often a quote that I heard years ago is that sales is the only profession where you get paid exactly what you’re worth. And, um, you, you did a good bit of sales training. Talk a little bit about what you bring to the table when you’re in the middle of whether it’s working on a movie deal, working on a, the next book deal, working on putting a team together, how much of your persuasion skills go into that and how do you utilize that tool in the deal making process?

Barry Habib:

So funny because of my book, I talk about sales being very fair. You know, I was pretty decent athlete when I was younger and still okay. But a lot older now, things don’t work exactly the same, but I was, I was good athlete in high school. When I got to college, though, people seem to be passing me by, at a faster rate than I was able to accelerate. I didn’t make the cut because of lack of drive or desire. Just God did not give me as much skill for jumping high or being as fast as some of the other players. And you know, that’s the thing I love about sales. Sales is fair. It doesn’t matter if somebody is faster than you, stronger than you can jump higher than you really doesn’t matter. You need one thing to be successful in sales and that’s this, you just need heart.

Barry Habib:

How bad do you want it? Are you willing to commit to it? Because what you have to do is you have to create value. Sometimes you say persuasive skills, some people think that’s wrong. They think that you’re trying to be manipulative. So being persuasive is different because what you want to try and do is you want to turn on the TV set in somebody’s brain and show them what’s possible. And then logically explain a path to get there. That’s just being a good communicator. So I think that communication is much more important than being persuasive. Most of us, when we communicate, we make the big mistake of forgetting that it took us a journey to get to where we are to formulate an idea. And we try and implant that in somebody else’s brain. It doesn’t make sense. We really need to do is better fork. We hold their hand, take them through that journey and show them how we at that and why it makes sense and how it could be beneficial to them. And if you design things like that, then it might appear to be persuasive. But what you’re really doing is you’re really being extremely logical and you’re showing people how you can do good for them and how you can benefit them and how you can help others. And by helping others, we wound up receiving more than we’ve ever imagined.

JP Maroney:

That’s good. You use the word value. I often say that when the, when the benefit received is greater than the price paid value is perceived. And anytime you have value, you have an opportunity, as you said to, to let someone really not even persuade them, but allow them to persuade themselves. Uh, I think it was Jeffrey. Gitomer said people hate to be sold, but they love to buy. And if you can show people a path and a way to solve a problem, obviously it’s a, it’s a great way to lead them, I guess, to a conclusion.

Barry Habib:

Yeah, JP is it’s it’s it’s um, I call it alleviating points of friction. Um, but, um, you’re, you’re a hundred percent, right? When we, when we discuss things like this and, and we, we talk about, uh, helping individuals see that, or, or turning on the TV set in their brain. This is what’s, what’s really important when you can, when you can do that and not just create value, but here’s the real secret. The real secret is to gain trust. Whether it’s in a relationship, that’s your most significant person, your significant other, or with your kids, or certainly in business. So here’s the secret. The secret is after you’ve put a deal together and everything’s done, give them more than what you agreed to. When you start to do that, you build enormous amounts of trust and Goodwill. Now, most people just trying to game it and get what they can don’t do that, put your deal together and then give more when you’re not obligated to, I’ve been employing people for 39 years started very, very early on in self employed.

Barry Habib:

Since I’m 21 years old, employing people never had any turnover. You know why? No one’s ever asked me for an increase because I want to make sure they know I’ve got their back and give it to them before it’s asked. See if you say to somebody, Hey, look, I know you’re doing well. I’m going to do this for you. Without them asking then trust is established. People don’t ever leave you because they don’t get that anywhere else. I mentioned relieving points of friction. So I talked about that in the mortgage business. I talked about that in healthcare, in rock of ages, one way of many ways that we alleviate the points of friction was kind of funny is that, you know, I would see people come into the show, rock of ages on Broadway and you know, Manhattan traffic could be tough. So people would get there a little bit, a little bit late still before the show began and they’d want a nice cocktail, cocktails are not cheap. So it’d be like 18 bucks for a cocktail. They’d wait online to get it. So now time is passing. By the time they get up there, the time they got it, the flights would flickered shows about to begin. And you are not allowed on Broadway at the time to bring your drink to the seats. And I’d watch these people nicely dressed, wanting to have a good time.

Barry Habib:

Why do you have to do that? So I went to the theater owners and I said, let’s allow people to drink. And the seats, they said, no, why not? I said, because we’ve never done that before. Well, if you know me, that’s not an acceptable answer. So it took me awhile, but I was the pioneer I became, I negotiated the first deal in the history of Broadway to allow drinking in the seats. And now all of them do it, but it makes for a much more relaxed and enjoyable experience. So we always want to do is alleviate points of friction in my book, money in the streets. What it actually does is it trains you to be able to see all of the opportunities that are out there and be able to, once you identify the opportunities, problem is not necessarily taking advantage of them. That’s a whole separate issue, but you can’t even reach that point unless you’ve identified them. So it’s really a skill that can be honed. If you understand how to identify opportunities,

Paul Nicolini:

Barry, you’ve built your mortgage mortgage market guide on your blood, sweat, and tears. And I’m sure that was your baby at the time. Right? Take us through the experience of you selling it. And how was that process?

Barry Habib: 

I’ll do mortgage market. The reason I sold it was just a different, um, a different, uh, set of reasons because I did not like what was going on in the real estate market and the mortgage market. When I sold that, uh, saw a change happening in 2006 and the industry just didn’t make sense to me. And I knew it was going to end badly. So I thought it would be a good time. And, you know, everybody thought I was nuts. You know, I remember going on CNBC and telling people that, you know, that they’ve gotta be careful, things are gonna change. Don’t do these interest only Negan loans. I would get actual hate mail for people. So what do you mean? They’re great. I just didn’t like them. And you know, I eat my own home cooking. So I thought that it would be a good idea.

Barry Habib:

We actually sold the business in a bidding war and literally literally six weeks afterwards, the financial crisis started to unfold. Now I’m not that good. I didn’t know it was gonna happen six weeks before, but I knew that something was up and I knew that this was an unstable environment. That’s why I sold that business. Now, other businesses that have sold for, for different reasons and to capitalize on it. But many times, if you’re an entrepreneur, you’ve got a business that you’re thinking of selling, I’ve sold other businesses and just closed on a very big one, literally last week. The reason that I did that, and the reason why you should consider doing that is because when you take a look and you say, okay, if I’m going to be able to, to have a liquidity event, maybe I don’t sell the whole thing, but take some liquidity off the table.

Barry Habib:

Just think about that amount of liquidity that you’re able to monetize. How long would it actually take you build that or to save that, you know, just to, just to, if somebody makes, I’m going to just use some round numbers here, okay. If somebody makes a million dollars a year, that’s a lot of money, but if you a million bucks a year, by the time you’re done with taxes, you’ve got like 500,000. Now, thinking about all your expenses, all of the expenses that you have that constitute earning the lifestyle that you want might be three or $400,000 a year. Because if you’re making a million dollars a year, you’re going to have a pretty nice lifestyle, right? You’re going to fit the role. Well, what does that mean? Maybe you could save a hundred thousand dollars a year if you’re super frugal and you deny yourself, maybe you could save $200,000 a year.

Barry Habib:

Now think about if you had a business that enabled you to get liquidity event of let’s just say $10 million right now you do have to pay taxes on that. But after you’re done with your capital gains portion of the tax on that, which we hope sticks around through this selection period, right? So if that were to be, then you should think about it. If you’re an entrepreneur, how many years of savings would it take me to amass that amount? So whatever it is, 7 million bucks, 6 million bucks. How many years of having to save a hundred or $200,000, would it take to get a lump sum of six or $7 million, take your lifetime. And that’s why, if you’re an entrepreneur, you may want to try and think about that. Now there’s other factors to cake. It’s not that black and white I’m being overly simplistic, but you have to have a business.

Barry Habib:

That’s not necessarily immature. It needs to have some maturity, but not too mature because you need to be able to leave enough meat on the bone for the next buyer to be incented, to want to do this, to see how it can grow. And then if you get the next bite of the Apple and you do everything right, then the next bite of the Apple with the help of a partner that can help you get there becomes even greater than the first bite. So that’s what entrepreneurs, in my opinion, should be looking at it as a liquidity event.

JP Maroney:

I want to talk a little bit about the opposite of success in just a moment, but if you’re watching or listening to this episode of the deal flow show, you can get access to our previous episodes, our archives, as well as following subscribe us to get access to future episodes. By going to the deal flow, show.com the deal flow show.com. So Barry, um, you know, we both know that someone who has success sometimes multiple success events also has had their share of what I call learning experiences. And it could be failures, setbacks, things that you control, the things you don’t control. You talked about the mortgage crisis, obviously right now, we’re all living proof of what has happened with Krone, a virus COVID-19 and the impact of that on our economy and businesses. But what is your personal process for dealing with a setback, a failure, a reset, a learning opportunity. How do you go through? You talked about heart and sales. How do you go through the mental game? How do you keep the heart ride? How do you put together the pieces? How do you put, you know, keep the logic right? And get back up and go again. Anytime you have those, those times where you’re not having the success that you thought you would, all of us are gonna

Barry Habib: 

Suffer. We all have suffered. We all will suffer. Okay? We all, well, this there’s no discrimination there. Every single one of us will suffer. Whatever that heartache is, and businesses are going to have some good times are going to have some tough times. But the one thing that you can depend on is you can depend on the fact that you’re going to have some tough times. But the other thing that you can depend on is you can depend on being adaptable and being resourceful. And the vast majority of people fail, because what they do is they encounter resistance and they say, Oh shit, I can’t do it. Right. What you really need to do during those times is be resourceful. You need to find a way, this is what you need to do. Listen, we’re designed this way. We’re designed this way. Do you know that your, your blood flow, even inside your own body, if a vein gets cut, do you know that your body finds other ways to get the blood around it?

Barry Habib:

And that’s essentially what you have to do, do what your body is born to do. Find ways around it. Be adaptable, be resourceful. When you encounter a setback, when you encounter something that is going to be a difficulty, understand that this is just part of the deal. It doesn’t always work out perfect. It’s not, it never does. So when you do know that that’s part of the deal and what your job as an entrepreneur is to do two things. One anticipate what the weaknesses are going to be, anticipate that, and to be resourceful and adaptable, overcome those. Now everybody should be looking at their business as if they were your competitor. Here’s what I would do. And here’s what I do every day. I look at my business and I imagine I’m a competitor. And I’m saying, how do I attack that business? What’s their vulnerability.

Barry Habib:

What’s their weakness. What’s an area that I can beat them. And then once you’re honest enough with yourself and you look at it from the eyes of your most fierce competitor and see how they can beat you, then it opens your eyes to say, here’s what I need to be doing better. Here’s what I need to anticipate. You’ll still have setbacks, but there’ll be far, fewer and far less severe. If you’ve already done the work to shore up those holes before they happen, the problem is, is most of us, we believe our own press clippings. And we’re out there thinking how great we are. You know, when you get a tailwind, we believe it’s ourselves. Instead of thinking about the fact that, Hey, maybe we got a little bit of a tailwind here. Let’s be wise, let’s be smart. I’ll also bring up a point that you said on our pre-call that what’s your blood type again.

Barry Habib:

So listen, I’m a very positive person. Everybody says, bear, you are so proud because I do. I think here’s one common thread, one common thread that we know factually amongst successful people is this it’s optimism. I would tell you that it is one of the most important character traits. If you find yourself lacking optimism, then it’s a skill. You need to focus on it. I start my day every morning with prayer and gratitude. I literally say out loud, all of the things that I am grateful for, because it’s sets you in a different place in your mind, every single day. And people joke with me as a barrier, always so positive. I said, well, guess what? There’s a true story. My blood type can’t make this up. It’s be positive. Okay. So, so I, I’m going to say to you now, it’s not always easy to be positive.

Barry Habib:

Believe me. That’s that’s, that would be unnatural. But for the most part, if you can remain grateful, if you can remain grounded in thinking about while we have problems, how many people are out there that would beg to have our set of problems. Right? Think about that. Think about all the things you’ve got going for you, all the good that you have, it just refocuses you and get you out of the negative mindset and then allows you to truly address what’s the cause of the setback and how can I overcome it and have the confidence and belief in yourself that have been here before I’ve gotten through it before I’m going to be able to overcome it again.

JP Maroney:

Good point. And it is about perspective. We were driving back from Miami the other day and actually in the evening. And there was something up ahead. We didn’t know what it was, but we came to a halt to sit and literally on 95, no movement. The finally it starts to creep a little bit, sit still creep a little bit. And about 20 minutes into this, I’m like, Oh my God, I got it. I’m about to jump over into the HOV lane, you know, crossover and just drive on that side. And we got closer, got closer. Finally, you see the flashing lights. And then we got up next to them and I’m grumbling to my wife the whole time arena. So we got up next to them and there were three or four cars just completely torn to pieces. One truck turned around backwards. The front was completely missing. I said, well, I guess there is somebody having a worse night than me, you know? And it’s all about perspective. So you had a question for him about it, about the deal process. I did. Can you give us some on our audience, some tips on how do you prepare for a deal and data book deal or a movie deal or, or any of your dealings in business?

Barry Habib:

Preparation is really important. I prepare, you know, I prepare, you know, if you want to grow, you have to measure, right. So, so do you know your numbers? Do you know your statistics? Are you being, are you looking at what your history is, what your trajectory is in anything that you do? So if you’re preparing to sell a company, you know, what you want to do is you want to think about that. Well, in advance, you know, where are you going? What are you anticipating when would be the right time? If you’re looking to put together any type of a deal, it’s really important in, in any negotiation to not look for win, win, but look for something that is good communication so that you can express and understand not only what your objectives are and make sure you stay true to your objectives, but what would be beneficial for your respected adversary on the opposite side of the deal.

Barry Habib:

So it’s very important in any negotiation to understand that you need to be prepared with what your objectives are. And you also, so if you should almost do this before you make a phone call to somebody, most people make a phone call and they just wing it. How much more effective would you be before you made an important call like that? If you had a list of things that you wanted to accomplish on that phone call, just take the extra three or four or five or 10 minutes to do that prior to getting on the phone or on the zoom today or whatever it is, or meeting how much more effective would you be just by what that one little thing. And then when you’re in a situation where, when you’re in a negotiation, please understand that in negotiation, neediness is a killer. It’s okay to want, but it’s not okay to need.

Barry Habib:

Neediness traps. You neediness is, is, is all the things that will hurt you in any kind of deal in any kind of negotiation. The strongest negotiator is always the one that could get up and walk away from the table, always. So the second you start to show need, your adversary will smell it. In addition to that, they will trust you less, not more dropping price causes people to trust you less, not more. Why don’t you give me that lowest price to begin with? What else? Where’s the bottom. Now, now it opens up a bottomless pit. If you, if that was your best price before, and now you came down to here, why can’t you come down to here? So you need to be very careful about dropping price without getting something in return for that to show that you’re truly in a negotiation, there’s so much to putting deals together effectively. Anybody can put a deal together, but how effective are you in putting that deal? Just remember that, as I mentioned, neediness is really the killer understand going in that if you want to be a great negotiator, you have to be willing to walk away from the deal that you’re negotiating before you put it together.

JP Maroney:

That’s huge. I agree. A hundred percent. I know you’ve got a question over there. I can tell by the way, you’re moving around, but if you’re watching or listening to this episode of the deal flow show, you can get access to our archives, our previous episodes, and also follow in, subscribe us, uh, to us to get future episodes by going to the deal flow show.com.

Barry Habib:

Got it guys to that end. Let me just give you one. I’m going to give you a little treat here. Okay? So I’m going to let you in on a secret, we all have people that are in any type of deal or negotiation or sale are being unresponsive. Heck it could be a contractor on your home. Okay? I’m going to give you a secret here and you’re gonna want to write this down. Trust me. It will be life changing for you. So if you want to get people who are unresponsive to respond to you, I’m going to give you a three sentence script. Trust me, this will be a magic trick. I’ve taught this to people. People have told me this has been life changing for them. So what I’m about to do for you is give you a magic trick that will totally help you and change your, if somebody is being unresponsive and you want them to be responsive, this is a simple three sentences.

Barry Habib:

Do not change it. Do not alter it. Say it exactly as I’m about to tell you I’ve left several messages for you and still have not heard back. That’s the first sentence I’ve left several messages for you and still have not heard back. Second sentence. If interest is cooled, I completely understand. And it won’t hurt my feelings. Third sentence. Just let me know either way. So I know how to proceed. Believe me. When I tell you this is a magic trick, when you do it now, not only does this work for customers for contractors, business, it’ll work in relationships too. I’m telling you it will. Okay. So here we go. One more time. I’ve left several messages for you and still have not heard back. If interest is cool, I completely understand. And it won’t hurt my feelings. Just let me know either way. So I know how to proceed. You can put that in an email. You can put that into text. You can leave it in a voicemail and watch your phone ring. Watch your response, come back because I guarantee you, the unresponsible respond to that. Why? Because there is no need.

JP Maroney:

And I don’t know if you train any kind of jujitsu or anything in Brazilian jujitsu. There’s a thing where you push, pull. And as soon as you’re pushed, they brakes for that. And then you pull and it takes them off. And you’re talking about you’re pulling back. They lean in you, then you push back in. I love it. Nice move. Now, ask your question. Well, I actually he’s, he’s had so many great points, but tell us about the red flags you see during this process. If you see red flags, what are they and tell us about that in any of your deals.

Barry Habib:

So again, you know, in a process, um, integrity is the most important thing because really what the bottom line of it is, is it’s just trust. Um, when everything’s great, everybody’s great. You really tell somebody’s character. When you see adversity, watch how they respond. Because if you’re going to enter into a deal, what you really want is you want a teammate. You don’t want somebody. When things get a little shaky to turn against you, to try and take from you. You want somebody who’s going to be committed and with you. So watch for the red flags. When you reach certain levels of adversity, are they staying in this? Are they trying to gain? You take advantage of you. Integrity is everything in a deal and trust is the most important thing. So, uh, watch neediness as well. See neediness. We talked about us displaying neediness, which is what kills deals.

Barry Habib:

But if somebody else becomes needy, take that as a red flag, because when someone’s displaying neediness, it’s a sign of desperation. And when people are desperate, they will do anything to accomplish the goal. And I don’t mean that in a good way, which means they’ll say anything to you in order to get what they want, whether they will fulfill that or not. And our brain already knows this. This is why. If we try and sell an act needy, the customer’s back off because they say, what are you so desperate for? So when you say something that they don’t necessarily believe you because you sound desperate and therefore they believe that you’re just telling them whatever it’s going to take to close the deal. A great salesperson tells the customer everything bad about the deal. Look, if you want a life, we all want to be magnetic, right?

Barry Habib:

We all want to magnetism is so critical. You know, you look at some people and you say, man, that person is so magnetic. I wish I had more of that. Magnet. Someone to tell you the secrets magnetism, the secret of magnetism is do two things. One is you have to be more educated and how help them learn something. If you can help them learn something and show them and people make their decision very quickly. First five or 10 minutes, you get on the phone, you’ve got to show your knowledge, but you can’t give what you don’t have. So what you need to do is you need to put in the hard work. That’s the good news. The good news is success takes hard work, and you should be happy about that because otherwise everybody would do it. And people would steal your business. The fact that you have the heart, you have the desire.

Barry Habib:

And obviously if you’re watching this, you already have that because you could be doing something else. But what are you doing? You watching this because you’d like to learn something to help you grow, to help you get better. So you already have that in you, it’s in your DNA. Otherwise you wouldn’t be watching this. Use that to your advantage. Be a sponge, learn as much as you can push yourself, be the very best version of yourself. And if you do that, then you have something to offer. And by the way, I want to talk about competence in a minute. But first, the other aspect of it is tell that customer, everything bad about the transaction. I know it sounds crazy, but what you want to do is you don’t want to look at that person as a customer. That’s got a dollar sign as a target on their back.

Barry Habib:

You want to think of them as if they were your mom, your dad, your kid, your best friend. And instead of being on opposite ends of the table, you want them right here next to you, looking at the deal together and say, here’s what I watch out for. Here’s why you should, what you should be careful of. Maybe this isn’t good for you to do it this way. A change to the whole deck, that overcomes price that overcomes everything. And doesn’t just work in business in relationships too. You want to be trusted. Tell him everything bad, be vulnerable. It takes a lot of confidence to do that. You know, in South America, they’ve got these spider monkeys that are really, really difficult to capture, but Hunter’s became very ingenious. And what they did was these nocturnal animals. They only come in at night. They take these heavy boxes that are ventilated with the monkeys, favorite food.

Barry Habib:

There’s no way in except for a small slit in the side of the box, monkeys are smart. They feel around, they find a way and they get their hand. Did they get the food? And then they can’t get their fist out because they’re holding onto the food and their clenched fist. Can’t fit through the slit. The hunters just come and pick them up. Now the monkey can be free and have everything they want. If they just let go and make it up, the freedom they want. But because they won’t let go, they trap themselves. And in life we have to think about is how many times do we trap ourselves? Because we’re afraid to let go. We’re afraid of losing. And that prevents us from winning. You know, I learned how to juggle am I there’s such thing as a juggling instructor. Okay. First thing they taught me to do is let the balls drop.

Barry Habib:

I’m like, why the heck would I want to let the balls drop? And they said, Barry, because if you try and catch everyone, you will never have confidence enough. And you’ll never be able to be relaxed enough to juggle effectively. And it’s like that in life. We’re not going to get every deal except that, that you could want to get every deal, but you’re not going to. And I mentioned competence before. Competence is a critical element. Isn’t confidence. So great. When you say not cockiness, but confidence. It doesn’t that draw you to someone. Who’s got competence. It’s very attractive and you become more competent. Be the very best version of yourself right now. That’s the great thing about it. What are you doing every day to make you the best version of yourself? The last conversation you have with a client was that the best conversation that you’ve had is the next one going to be better.

Barry Habib:

Are you constantly striving? The conversation you had with your kids is that, that best interaction that you’ve had yet, are you dealing with your significant other in the best way, where you’re proud of yourself and you know that this is the best version of yourself. You’re giving the best version of yourself to the world. If you’re doing that, that gives you unbelievable confidence that, Hey, no, I’m not like I was 10 years ago. I was good. 20 years old has got three of the I’m the best I am right now. And that inner confidence will draw so many people to you. Whether you’re trying to sell a business, we’re trying to sell a size of steak, knives, whatever you’re trying to do, or trying to win over somebody’s heart. That kind of confidence is extraordinarily powerful and magnetic.

JP Maroney:

I guarantee you I’ve been there. You’ve been there. You’ve been there. Everyone listening to this audience has walked into and we’ll walk into a selling environment or a deal where they really do need the deal. And so how do you prepare mentally for that? What are, what are some of the things you can do in that preparation process to make sure that you’re walking in with that level of confidence that I could walk away, but that gun, I know I need this deal. How do you present that, that front in an authentic way?

Barry Habib:

So I remind myself that I want the deal, but I don’t need the deal. You know what I need any air food, water, shelter, maybe some love, okay. So that’s what I need. I don’t need that transaction because the sun’s going to come up tomorrow and there’ll be another one that’ll be out there. Maybe it’d be harder. Maybe it’d be less exciting, but they will be better ones as well. Very rarely do we get this deal, that the best deal of our life, that we’re in the midst of, okay. We have many, many, many, many deals who knows what the best deal of our life is thinking about five years ago, eight years ago, when you thought was the best deal of your life, probably as dwarf now, by things that have occurred for all of us, right? So you don’t need it. You want it, and it’s okay to want it.

Barry Habib:

So the most important thing that you have to remember is that if you have that mindset, then what you’re really able to do is take the approach of what is best for that client. What is best for that loved person that you’re trying to talk to you for your kid, your significant other, the heart. You’re trying to win. Think about it from their perspective and think about what’s important to them and how you can help them. How can I best serve them? What can I do that would be adding value to them? And by doing that, then it becomes a lot easier for them to root for us as well and want to make that happen for us too. So it’s that type of a mindset, but it all starts with not being needy. Cause if I’m just concerned about what I need and what’s going to do for me, I’m gonna have a much more difficult time trying to put something together with that person who’s across the table, in whatever context it is.

Barry Habib:

But if I’m thinking about how I can make a positive difference and impact for that individual across the table and how I’m addressing their concerns and how I’m vulnerable and how I’m not afraid to put their wellbeing in front of my commission. Well, that’s a different world. And not only do you get that deal, but you get that deal forever because they’re gonna keep coming back to you. And then on top of that, they’re going to give you every single person that they know that will come to you. That’s longterm thinking. The problem is most of us think short term. So if we get out of the short term mindset and start to think longterm, the rewards are incredible. Good answer.

Paul Nicolini:

You mentioned, you just mentioned longterm and certainly people have certain goals short term or longterm. Tell us about some of your goals and maybe some that you haven’t achieved yet this far and maybe a where you’re looking down the road.

Barry Habib:

So I just had some, some really amazing longterm goals just culminate, you know, that takes it’s years in the making that just culminated. So, you know, it’s always important to enjoy them, but it’s always important to continue to think ahead. So I’ve got a book that’s going to be released this month, just closed on some very, very major transactions with our business, uh, and, and inside of our business and new businesses that I’ve launched. So they’ve all kind of come together. But my goal now longterm is to take the new arrangements that we have and to build them into grow them both during internal growth, during acquisition and creativity, you know, creativity is something we don’t talk enough about. We all have this amazing creativity. Now I grew up extraordinarily poor. So my dad was 57. My mom was 40. When we were born, they were immigrants, uh, barely spoke, but really didn’t speak the language.

Barry Habib:

I’m first generation in my family here in the United States. And my dad passed away when I was young. My mom worked in a sweat shop, which is where they make dresses and it’s just tough conditions. So I know what it’s like to be there. And when, when I was growing up, you know, one of the reasons why I wrote the book is you don’t. My mom would, would talk to me about stories about how people that would come to America would hear that America is such a rich country, there’s money in the streets. And that’s why I wrote the book called money in the streets. Well, when we take a look at years later, before my mom passed, I remember sitting down with her and saying, mom, you know, you were right. There really is money in the streets because I learned how to identify opportunities.

Barry Habib:

I learned how to do good with them and build them into something. And when we take a look now at goals that we have going forward, creativity is so important. We all have it. Mine was fostered because I didn’t have any toys. So I like invent games, do that at a young age. But when you come up against obstacles, we talked about adaptability. Creativity will help you. And in building your business, many of us stay stagnant and we don’t utilize the creativity that we have to push ourselves when we’re successful. When you’re successful, we tend to just, you know, put it on cruise control. That’s the time to use that platform and that leverage of being successful to then push it to the next level. That’s how you stay ahead of your competition. Find where the points of friction are constantly push yourself to take a good situation, a great situation, and take it a step higher, make it even greater, never be satisfied and always try to improve through creativity.

JP Maroney:

Very cool. Before, uh, we get finished chair. I want you to talk just briefly about the book and be, have a cover or a sample or something. You can show us what it looks like.

Barry Habib:

Well, right on Amazon it’s money in the streets. You can go there. Amazon Barnes and noble, it’s going to be released October 27th. And, uh, and the book is one that as I mentioned to you, so by the way, Tony Robbins, who doesn’t, doesn’t typically give endorsements. Tony wrote this glowing endorsement on the book because he really believes will help people. Uh, Randy Zuckerberg, who is Mark Zuckerberg, sister, she created and invented Facebook live. She wrote the forward and the most beautiful forward, and the book will truly help you. If you’re going through a tough time, it’ll help you get through it. If you’re going through a great time and help you it. But what it really will do is teach you lots of lessons that will help you identify first opportunities and then how to maximize them. And then most importantly, how to do good with them because in life there’s a lot of successful people that are very unhappy.

Barry Habib:

And while we’re talking to you about success and many of you are successful, and I hope you’re happy all of you, but you have to remember that while at least in my humble opinion, in order to be successful and happy, you need not just achievement success, but you need fulfillment and fulfillment usually comes from helping others. So if you can, along the way, help lift others, inspire others, do good for others. That’s what gives you the fulfillment, which brings happiness along with successful achievement of goals. If you have the marriage of those two and you’re going to be, you’re going to be pretty happy and you can’t help, but being successful because one builds on the other.

JP Maroney:

If, uh, other people see this, they think about opportunities that might be a fit. What kind of people would you like to connect with from our show, people that have been guest on the show, um, what kind of people would you like to have reaching out to you as a result of seeing this or hearing this

Barry Habib:

People that want to help others, people that understand that life’s about giving and not receiving people that work very, very hard to continuously improve that believe in themselves that want to put the hard work yet people that are into it that are motivated, that are spiritual, that are grateful and have humility. That’s the type of people I love connecting with because those individuals, what I call it is I say they get it. Not everybody gets it, but when you find someone who gets it, stay close to them, because those are the relationships that will be most enjoyable and most meaningful for you. So like both of you, gentlemen, you guys get it,

JP Maroney:

Barry hubby, um, as we finish up, what is the best way for people to reach out to you, email, phone website, whatever your choice.

Barry Habib:

So a MBS highway.com is, is the typical one, but you could email me. My email’s real easy. It’s barry@barryhabib.com. So easy, so simple. Um, that’s, that’s probably the best way to reach out to me.

JP Maroney:

Excellent. It’s good to have you on Barry Habib, MBS highway on behalf of mr. Paul Nicholina I think we covered it today. This is good stuff, inspiring a different angle, a different angle. And, and I’ll tell you what I look at when you go to the deal table, having that arsenal of tools. And it’s not always those sharp edges. I liked some of the stuff that you talked about today and guarantee you, some of our audience learned from that. Listen, if you are watching or hearing this episode of the deal flow show, you can get access to our previous episodes, subscribe and follow us by going to the deal flow show.com. If you think you’d be a great guest, reach out to us through the website. If you know somebody who’d be a great guest, you can suggest them to us in social media, LinkedIn, et cetera. And, uh, also if you’re like Barry over there going, I need somebody you’re back in touch with us and let us know who would be a great guest on the show. We look forward to being a part of your dealmaking process in the future. I’m JP Maroney, mr. Paul Nicoline, take care. Everyone. We’ll see again. In another episode of the deal flow show, all right,

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