Start With A Win - Advancing Hispanic Homeownership with NAHREP's Gary Acosta

Episode Date: March 4, 2020

On this episode of the Start With A Win podcast, our guest is Gary Acosta, CEO and Co-Founder of the National Association of Hispanic Real Estate Professionals. NAHREP is celebrating its 20th anniversary as a trade association this year and they are continuing to see growth in their membership numbers, as well as the number of Hispanic homebuyers. Every year, NAHREP conducts a study called The State of Hispanic Homeowners to stay informed about the trends among Hispanic families and gain a better understanding of the statistics.NAHREP aims to educate and empower both their member agents/brokers and their potential clients by advancing sustainable homeownership among Hispanics in the US. Since 70% of Latino homebuyers are first-time homebuyers, it is essential that they find a real estate agent they can trust to walk them through the process and help them make good decisions along the way. More Hispanic families are buying homes than ever before, but some are nervous to take that first step because they are intimidated by the process. Real estate agents must be culturally competent and prioritize helping families over closing deals. Homebuyers should focus on finding an agent they can trust and getting prequalified before looking for a home.Gary is a phenomenal leader because he believes in having a conversation every day with someone who outranks him. He recommends this practice to the members of NAHREP and everyone else he leads in some way.Links:“Zero to One” book: https://www.amazon.com/Zero-One-Notes-Startups-Future/dp/0804139296 Connect with Gary:https://nahrep.org/https://twitter.com/garynahrep  Connect with Adam:https://www.startwithawin.com/ https://www.facebook.com/REMAXAdamContoshttps://twitter.com/REMAXAdamContos https://www.instagram.com/REMAXadamcontos/ Leave us a voicemail:888-581-4430

Every day is filled with choices. You're here because you're choosing to start with a win. Get ready to be inspired, learn something new, and connect with the WinNation. Good morning, good afternoon, good night, WinNation, wherever you are on this planet. We know we have some worldwide listeners on this show. Adam Contos here, CEO of Remax, coming to you from top of the 12th floor, Remax World Headquarters in Denver, Colorado. And I got in studio with me, Producer Mark. How you doing, buddy? I am doing so good.

Oh, look, a little tune going on there. I like to throw in a tune from time to time. Look at that. I love it. It just kind of lifts everybody up. That's right. Well, and we got an in-studio guest today, so that's always awesome. I'm super excited about today's show. We have with us in studio the CEO and co-founder of the National Association of Hispanic Real Estate Professionals, Mr. Gary Acosta. Welcome, Gary, to the show. Thank you, Adam. It's good to be here.

You and I have known each other for quite a few years now with the relationships between RE-MAX and NAREP. And so we know here in headquarters and through our friendships and things like that what NAREP is. But can you tell the audience, give us a good deep dive into what is NAREP and why does it exist? Sure. So NAREP is a 20-year-old. We're actually celebrating our 20th anniversary this year. Wow. Happy birthday. Yeah. Thank you. Yeah. It's a 20-year-old trade association. So we're structured the way NAR is and the Mortgage Bankers Association. So we're a business association founded in 2000, made up

primarily of real estate agents and brokers who are focused on serving Hispanic homebuyers and sellers. And the thought behind it back 20 years ago was that this was this surging sort of demographic that very few people knew a whole lot about. And there were a lot of agents out there that were serving the market, but were doing it in somewhat of a fragmented fashion. And we felt that there needed to be an association that brought them all together, where they can exchange best practices, set an agenda, communicate directly to the industry, to the powers that be, whether it's in government or in major corporations like REMAX, so that they understand those nuances well, so those consumers can get served well. I love this. So you were involved in the industry when you started?

I was. Okay. What were you doing in the industry? So I was a mortgage broker first. I started my own firm at 26 years old. I didn't know what else to do. So I thought, let's try this. Did that for about five years, then graduated to become a mortgage banker, which is kind of a big deal in that space. Did that for five years before we started NARAP. Okay. Entrepreneur, leader. You said, I love the Hispanic community. Obviously, you're a part of it. And you thought, this is growing. This is a growing community. It needs to have better representation, some great leadership

in the real estate mortgage industry space. Yeah. Fundamentally, that's it. So I had a colleague by the name of Ernie Reyes. He was a real estate broker. He and I would do business together. He would refer me a loan every so often. We'd close that transaction. We'd celebrate it by having a nice Mexican breakfast together, usually chorizo. I don't know if you have that, Adam. I love it. I recommend it.

Good, good, good. Yeah, they have good Mexican food actually here in Denver. Yes, we do. I love chorizo. My favorite thing, chorizo burrito in the morning. So we'd have a breakfast, and then Ernie was older than me, about 20 years older than me, so he was a very sort of wise, sage kind of guy, had a really interesting political background, used to be the chief of staff for Leon Panetta.

Wow. So Leon was, as you know, the defense secretary, chief of staff in the White House. But before that, he was a congressman up in Northern California, and Ernie was his chief of staff. So Ernie knew politics, and I was this younger, sort of ambitious entrepreneur. And together, we used to talk about things, and one thing led to another. And we said, you know, if not us, then who? Let's start the National Association of Hispanic Real Estate Professionals. Awesome. I mean, you guys are the largest and fastest growing ethnic association in real estate, is my understanding. Is that correct? Yeah. I mean, we're a very large organization. Of course, the Latino population is kind of the wind

behind us, but our organization now has just short of 40,000 members, has about 100 local chapters throughout the country, and is still on a very fast growth trajectory. That's awesome. And I've been to several NAREP events. We're a huge participant in NAREP. You are. And love it so much. I mean, it's such an amazing community to be part of. And frankly, for all of my friends in the real estate industry out there that are listening to this, if you don't participate with NAREP, you are missing out on, first of all, a great time and amazing people. But also also there is some serious business

going on at NARRA. Well, sir, you touched on a couple of things. First of all, we are a business association, right? So it's all about the business with us. So we love meeting and inviting people who come from even outside of the community to share all the growth, all the dynamic, all the energy, as you put it. You said it was fun. We think we have the funnest organization out there in the marketplace, or the most fun. People come to our conferences and they say they feel an energy that they don't feel anywhere else. And I think that's true. It's about the ambition. It's about the enthusiasm. It's the positivity that exists within our network. And there's something sort of magical about NAREP that I didn't even understand early on. And that is our members have as much of a emotional connection to the organization as they do an intellectual or

business connection. When they go there, they feel that they're part of something special. And we try to encourage that and enhance that. And you're absolutely right. You talk about the emotion and the enthusiasm in this. This is an organization with so much heart. Thank you. When you go in there, the people are, members are warm and caring. It's probably one of the most emotionally connected conferences that I get to attend. And I love it because the day I walked in, I was with so many of my friends like Daisy and some other folks that are a big part of the organization. And they just said, Adam, welcome. We love having you here.

Let me show you around. You've got a lot you can learn here, a lot you can contribute. This is our community. And we talk about associations like there's this cold structure of a bunch of human beings. But this is so much more because, first of all, there's so much impact going on internally, but there's also a lot of impact going on externally in the community with NAREP. And I want to get into that a little bit because you guys are such a big contributor to the growth of Hispanic housing in North America, in the United States.

Yeah. Or just housing in general. Yeah. I believe the Hispanic community is the largest growth factor in housing. So I'll give you a couple of data points, a couple of data points. So we produce a report every year called the State of Hispanic Homeownership. And so that report tracks how Latinos, Hispanics, and I use those terms interchangeably, just so you know, Latino, Hispanic, to me, it's the same thing. So some people ask, which one is correct? Well, Latino, Hispanic, fine. So we track how Latinos are performing in terms of home ownership. We look, did we do well? Did we actually have gains last year? Did the home ownership rate increase? And then we look at some other data

points to tell us what's likely to happen in the future. Household formations, income trends, workforce participation, the size of families in those households and so forth. And so I'll give you some numbers that'll probably even shock you, Adam. So Hispanics are responsible for approximately 60% of all the net growth in terms of homeownership nationwide over the last 10 years. Wow. That's six in 10 new homeowners that have entered the market in the last 10 years are Latino. That's amazing. Right? So in terms of growth, now we have a lot of room to grow. The homeownership rate for Hispanics right now is about 47, 48%. The overall in the country is just under 70%. Big gap there.

But one of the biggest reasons for that gap is Latinos are also the youngest demographic in the country. The average Hispanic in this country is 28 years old. The average person in this country is 38 years old. The average Anglo in this country is actually 43 years old. So Hispanics are just entering those prime home buying years. So we expect that growth to continue for many, many years moving forward. Wow, I love this. And for you and your leadership to take and look at that and say, what is the opportunity to improve the experience of the consumer, the protection of the consumer, and how we're able to develop just a better place in housing overall? Sure. I mean, it's fantastic. Let's dig a little deeper into NAREP because there's this huge focus on educating and empowering. Yep. Tell me a little bit about NARRA because there's this huge focus on educating and empowering. Yep.

Tell me a little bit about what those two words mean to you. So first of all, when you think about what organizations actually do, our mission statement is to advance sustainable Hispanic homeownership in the country, right? We think homeownership is a great thing. It leads to a better quality of life, stability, the whole thing, right? So we want to advance that. And we want everybody who has the means and the desire to participate in homeownership to be able to do so, right? And Latinos have a passion for the home because family is everything. So we think, okay, so what is our lane as an

organization to bring that about? Well, we think that our primary contribution to the marketplace is to educate the real estate practitioner who's serving Hispanic homebuyers on best practices, on those nuances, create mastermind opportunities. Latino consumers, while they want the same things as everybody else, have these little nuances, right? Some of them speak Spanish predominantly, and they want to be served in a Spanish language capacity. Others are new to the homebuying process. About 70% of Hispanic home buyers are first-time home buyers, and they don't necessarily have that uncle or that parent who went through the process. So they really need a trusted advisor to help them navigate

through that process. So number one, our goal is to provide agents with the information and the resources they need to serve these consumers well. And empowering that community at the same time goes hand in hand. I love that. We've got two segments here. Let's call it agent and consumer. Okay. I'd love to, I love really executable items, things that people can walk away from this podcast with and say, I'm going to go do that. So when it comes to really maximizing your ability to understand and be part of this growth of Hispanic homeownership, what two pieces of advice, and I know, you know, obviously join NAREP and become part of this, but give me two other pieces of advice for an agent to execute on in order to

grow their business in this space. So, you know, I use the term cultural competency, right? So people ask us all the time, do you have to be Hispanic to be able to serve Hispanic consumers well? And so my response to that is it does help, but the fact is is that anybody who understands the Hispanic community in terms of their cultural preferences and nuances can do extremely well in terms of serving this marketplace. So that means little things, right, like the fact that Hispanics are very family-centric. And if you're going to sit down and you're going to talk to them about,

say you're doing a listing presentation, or let's just say you're talking to some new homebuyers, expect them to bring their grandparents and their children and everybody to that meeting because it is a family decision at the end of the day, right? And so being able to accommodate that, being able to know how to speak to them in that regard, it's not rocket science, but it's about respect. Latinos will do business with you if they trust you. And more importantly, if they think that you have their best interests in mind. It's all about trust. So people say, how do you market to the Latino community? How do I reach them? How do I let them know that I'm here to serve them and I want them to be my customer?

You have to start with how do I establish trust with that community? Marketing in a traditional sense can be helpful, but at the end of the day, it's a personal connection and it's touching those little hot buttons that indicate that you're in it for them. I love that. When you're talking about this, a couple of things come to mind. First of all, people want to go and treat the entrance into a community as a business entry or something of that nature. They want to go somewhere and do business. But ultimately, really what we see in real estate overall, but so deeply when it comes to the cultural aspects of the Hispanic community is, don't come to me and tell me you want to sell me something. Come to me and become part of my community. Absolutely.

And I think that is so cool. I mean, I love participating in different communities. I don't care what ethnic aspect it is of society. I think it's so much fun. And that's such a wonderful part of the RE-MAX network and of real estate in general is, you know, we get to participate in all parts of community because housing is universal. Sure. It's so cool. But the other thing that comes to mind when listening to this is the story of how Dave Linegar, the co-founder and co-chairman of Remax, got into real estate. Amazing story. He told that at an ARF conference and I was blown away by it. I didn't know that story when he first said it. For the listeners that don't know this story, our co-founder, Dave Linegar, when he got into real estate in the early 70s, he was in Phoenix. And he was at a grocery store,

and he met a Hispanic couple. And he helped them with their real estate needs. And they spoke a little bit of English. Some parts of the family did. Some parts of the family didn't. But Dave went in and said, look, I can help you. I want to help you with what you need. And he ended up doing, I think, like five transactions with this. With that family. Yeah. It was incredible. That was the beginning of the founder, the co-founder of Remax's real estate career was understanding how to not, I don't want to say cross cultural boundaries, but transcend cultural boundaries, I guess you could say. That's a good word. That's a good word. Yep.

It's such a fantastic thing. So let's talk about the homeowner. You know, what tips do you have for somebody who is a homeowner or somebody who wants to become a homeowner when it comes to, we'll call it the NAREP experience or the whole ecosystem that surrounds so much of what you do in the real estate space? What tips do you have for people in that? So first-time homebuyers in particular, it's still a very complicated process, right? Buying a home for the first time and intimidating for a lot of people. So you absolutely need to do business with somebody who can help you navigate through that process, can point out the things that you need to pay attention to and the things that maybe you don't need to pay attention to.

Because it is. It's probably the largest financial transaction that most families will ever encounter in their lifetime, right? So finding that right person to help you navigate through that process is critical. Number one, I also think that the financing process is critical. I come from that space. It's important to get pre-qualified in advance and to have a realistic sense of what you can afford and make sure that you're looking at homes in that range because you don't want to get into a situation to where you're outside of your price range or you can't get a mortgage to acquire a home that maybe you looked at. So getting pre-qualified is also very important. But you also want an agent who's going to be more than just a facilitator of a

real estate transaction. In many, many Latino communities in general, the real estate professional serves as sort of a trusted advisor, a consulieri of sorts, right? For all things financial related, right? So these relationships can be with you for the rest of your life, quite frankly. It's difficult right now because there's very limited inventory in a lot of markets. So you definitely need to work for somebody who knows what they're talking about. I love that. And you talk about the deep tie-in of the real estate professional in the community, particularly when we talk about the homeowner or the future homeowner who's looking for a place to live. And the beauty is

the agents in these communities who have built this deep relationship base in the community, like what we're talking about here, there might not be a house on the market, but they might know somebody who's been considering putting their house on the market that- That's a good point, especially right now. That's valuable. Exactly. I totally agree with you. And can't stress enough the value of the professional agent in this whole thing, because somebody who is willing to be the best and do the best for the consumer is so important. Absolutely. Absolutely. And some people don't realize who are buying a home that you don't have to pay that agent. That agent gets their compensation really from the sale, from the seller, quite frankly. So it's a free service for all intents

and purposes for most buyers. There's no rule that says don't go talk to an agent and find out where you're at and where you want to get to. That's absolutely right. That's right. Great opportunity for somebody that's listening to this to go today. So this has been so awesome here. But I have a couple questions for you. You're an amazing leader. I mean, it's so cool to call you friend and to watch you grow this incredible organization.

I have a couple winning questions to ask you here. So one that I love to ask people is, do you have any favorite books that you read and why? What inspires your leadership? So I am sort of a serial entrepreneur. I run a big trade association. I don't really come from that culture. I started small businesses for years before I started NARAP. And NARAP was probably the most formidable thing that I've ever been a part of. And it's a labor of love, quite frankly. I read a book a couple of years ago called Zero to One. And it's really about entrepreneurs. And it talks about the fact that there's a unique skill set to take something from nothing and turn it into something.

In other words, going from zero to one. Going from one to 10, in some ways, is easier than going from zero to one. It talks about fundamentals in that regard. And for entrepreneurs, it's a great, great book. And I love that one. That's awesome. Zero to one. Do you have a favorite quote, favorite thought that you live by? Well, I'll tell you, I have surrounded myself sometimes by luck and sometimes by design by people who can think bigger than me. When I went to college, I went to college at Pomona College in Southern California, and I played basketball for a gentleman by the name of Greg Popovich, who now is the head coach of the San Antonio Spurs, Hall of Fame. Some people think he's the greatest of all time. He was my college basketball coach. And when you play for somebody

like that, even when they're just getting started, you get exposed to a mindset that you just don't see every day. Somebody who had the ability to picture himself at a much bigger stage at that time. He was coaching division three, and now he's coached the Olympic team, coached four NBA championships. And I definitely was influenced by that. I have a partner today who works on an event that we call Latitude, which is adjacent to NAREP right now, by the name of Sol Trujillo. He's the only individual to lead three separate Fortune 500 companies in three separate continents. Wow.

He happens to be Latino. He's very focused on what we call changing the narrative about the Hispanic community in the United States from something that people sometimes misunderstand, that we all have immigration issues, that we're all poor and so forth, to the fact is we are the driver of economic growth in this country. So surrounding yourself with great people has always been a philosophy of mine that has served me well. Surround yourself with great people. Incredible. Final question, Gary, when we wrap this whole thing up, I love to find out

from great business leaders like yourself, Gary, how do you start with a win? I actually put together a little list that I follow, what I want to get done today, what I want to get done this week, and what I want to get done this week, and what I want to get done this month, essentially. And I have a few things in there that I define a successful day by, right? And so one of them is I talk to all of my direct reports. I have at least one conversation with a sponsor or major partner of the organization, but I always have a conversation in every day with somebody who outranks me. at least one conversation with a sponsor or major partner of the organization. But I always have a conversation in every day with somebody who outranks me.

I try to find somebody to talk to, just whether it's a casual conversation about sports or business or anything else. I try to have one conversation a day with somebody who I describe as outranks me. To me, that defines a successful day. There's a thousand things that are in front of us every day. So if you can just narrow it down to a handful of things that really matter, then that's how I think you can have success in your life. Gary Acosta, co-founder, CEO of National Association of Hispanic Real Estate Professionals, colleague, a friend. You can find Gary on Facebook and Twitter at GaryNarep and at Gary Acosta,

as well as check out Gary's blog at GaryAcosta.com or at Narep.org. Gary, it's been a pleasure having you on the show today. Thank you so much. My pleasure. Thank you so much for being here, my friend. And everybody, don't forget, start with a win. Thank you so much for listening to Start With A Win. If you'd like to ask Adam a question and potentially be on our next episode, give us a call and leave us a message at 888-581-4430. Don't forget to go on to iTunes and subscribe, write a review and rate the show. For more great content, follow Adam on Instagram, Facebook and Twitter. And remember, start with a win.