As we prepare to open the doors to PLF’s new building for our grand opening, I can’t help but think about what it took to get here. While buying this building is an incredible achievement for our company, the actual journey in acquiring it really encapsulates what makes PLF stand out in real estate. The series of events that led up to us setting roots in Downey were challenging lessons that really helped to shape PLF’s values. Through this process, I came to realize that with tenacity and a positive mindset you can manifest anything – but you can’t do it alone.
Looking in
In 2012, I opened our Pico Rivera office. It looked like a bachelor pad with one room divider, a couch, and a few desks. I never envisioned having agents. I was happy being a solo super broker, bringing in about $470,000 a year, but it took a monumental amount of work. So over the years, through friendships and networks, I expanded into a brokerage, adding and educating new agents, and growing PLF’s team.
One year, I got really sick and I couldn’t figure out why. I was taken to the ER with unbearable pain and then diagnosed with a fairly common case of diverticulitis. The hospital sent me home with antibiotics, and while it helped mellow the symptoms for a little while, they weren’t dissipating, and I was living with chronic pain for several months. After bouncing around doctors to figure me out, and then dealing with insurance companies, I ended up with Kaiser in Downey. There, the doctors found I had a very complicated and rare case of diverticulitis, and they had to perform a surgical procedure to treat it. Thankfully, I came away from the procedure healthy and feeling better than ever.
This health scare happened over the course of nine months in 2018, from initial diagnosis to my recovery from the procedure. For nine months, I wasn’t able to work at 100%. It made me dive deep, and look inward to figure out what was truly important. I knew that holding my business up like Atlas was not a sustainable way to support my family. I’m so grateful that I was able to lean on my agents and staff during that time, to help shoulder the load. Without them, I don’t think PLF would have survived.
As a result, I focused on growing my business. I decided to develop a new mortgage division, to create a new stream of income. I also wanted to add agents to our team and ensure they had the right mentorship to learn how to become top producers. This really changed our business. So much so that we started grossing three times as much as I had done as a super agent, but in a more condensed way. I didn’t have to be out on the street all the time, I was able to delegate, and I didn’t have to carry everything.
Looking out
During this lucrative time, our office began to shift. We took losses that affected me personally and financially. Our heavy hitters got sick and some of my agents left PLF for other endeavors. I have to admit that losing producing agents and lenders that I mentored and educated really stung. But it also made me realize that if I can’t show growth, then I would continue to foster agents who would feel like they can no longer grow in our company, and I would lose them all over again.
As I am in the process of strategizing how to grow further, one of my loving relatives, Danny Garcia, calls me for advice and help in buying property for new offices for his company. He is incredibly successful and his work is crucial to the community he serves. So of course, we partnered up and it was such a meaningful experience. Not only was I able to help him find his property, but it really brought us closer as a family. It was an amazing adventure to get to know him and his partner, Kim – who has since helped to manage my marketing. Danny plugged me into many people in his network who I was able to help.
Danny dropped the idea of buying a building into my head. I was at a point in my career where I plateaued – I had productive agents, a productive business, and it was challenging to find a clear solution of how to grow. I never thought I could buy a building. It seemed so out of reach. This truly is a case of “you are who you hang out with” because I actually had to look outside of myself to see the potential of my business. I had to get another perspective and see what Danny saw. He connected me with a loan officer, and while I didn’t end up using his connection, it opened the door for other opportunities to come through.
That fresh perspective from my cousin coupled with the pragmatic push of our Office Manager, Nadia Moreno, who has been in the trenches with us since the beginning, is really what set the wheels in motion. Nadia broke it down and said, “You have the real estate company, the mortgage company, now we need to open an escrow. And we need a building to house all three.” We hadn’t incurred any huge overhead and we had a stockpile of savings. That was everything that had to happen emotionally and financially for us to take this leap.
With all that said, I had been casually looking for a building.
Looking ahead
I will confess that I committed the cardinal sin in real estate of shopping without my wallet. I hadn’t gotten pre-approved with a bank, but I was shopping on Loopnet, a commercial search engine, for a building. Once you have even the slightest idea that you may want to buy, it’s hard to resist the temptation to look around – I completely empathize with anyone who has experienced this feeling! [NOTE TO READERS: Do not do this! We can walk you through the process and help you get all your financial ducks in a row before you start shopping.]
One afternoon in August, I sat down for drinks with my friend, and agent, Mike Ramirez. We were watching a Dodger game and I told him that I was thinking about shopping around for a new building. While we were hanging out, a listing in Downey popped up, and it was exactly what I was looking for.
I made the appointment while I was sitting at the bar and we drove to check it out. As soon as we got there, I knew this was the one – I could see PLF in this building. I was so excited, I called my whole family and staff to meet us there. Remember, I was not pre-approved! I don’t know if I was doing this subconsciously to push myself or hold myself accountable for this goal because I presented it to everybody. But everyone loved the building, loved the space. It was perfect.
Look in the eye
Next day, I thought how do I get this? I didn’t have my finances in order, but I managed to get all the necessary documents expedited and to the commercial lender, only to be denied. I was crushed. Unfortunately, this was one of so many hurdles along the way.
I worked with the seller’s realtor and somehow locked the contract in for the building. I put the deposit down and was in escrow. I was making big moves to show that I was committed to acquiring this property. My mother-in-law, Yolanda, saw that I was reaching for the stars and didn’t want me to put a strain on my family. So she graciously presented an opportunity that would help me through this process and she was a guiding presence to help get my situation together. I found a loan officer and we get the ball rolling.
The next hurdle we faced was a background check pulled by the SBA. There were items I had to expunge from my record, which takes time. My escrow needed to close, and while it was a stretch for them, the seller was nice enough to give me more time.
It was November 2021, my record was cleared and I was ready to close. But then I approached another unbelievable hurdle. I needed to present transcripts for the past 3 years of taxes, which were not transcribed because of Covid. At that time, the IRS had a tremendous backlog of everything, and there was no way I was going to meet the deadline, so the seller agreed to another two week extension for $1,800.
At this point, I am begging the IRS, but I got nothing. Mid-December hit and now our cordial seller was impatient. They wanted $20,000 for a one month extension. I paid it and we had until January 14th to close.
We hold our Christmas party and I marvel at our amazing staff of 25, lenders, agents, and administrators, and feel such responsibility towards them. They are looking to me to close this out and give them space to grow. I’ve announced it to them. I’m so close!
Then on December 18th, two days after the party, I caught Covid. At that time, I was required to quarantine for 14 days. While being in my room by myself, through the holiday and New Year’s might seem like it was the worst obstacle of all, it was actually the best thing to happen. It allowed me to get on the phone like a robot and call the IRS every moment of every day of self-isolation, until I finally made it through to someone who was able to process and generate my transcripts.
The loan officer who helped me was so sick of me and my extensions. He was a pill to work with, quite rude and inattentive to me as his client. It makes me proud of my staff, who have learned to partner with our clients and treat them with respect and care. But I had to work with him because he was getting the loan done. I send him the transcripts and he is floored. He acknowledges that at every turn, I looked at each challenge in the eye and worked towards a solution. I persevered and now we are speeding through. I purchase insurance policies, clear liens with the state, sign the loan documents, and wire the money. It takes a day to hit.
On January 14th at 4:00pm in the afternoon, we recorded and closed on the office building.
Looking up
Rewards in real life are not like the movies. There’s no music cued, no parades, or confetti falling in slow motion. Rewards in real life are not so much prizes, as they are rewarding experiences and achievements. The day I picked up the keys to the new building was a hectic day at work. I picked my daughter up from practice with my marketing manager, Kim, and we headed over to get the keys. When we got to the building, the keys wouldn’t work, so Kim crawled through the reception window to let us in. We couldn’t end this difficult journey with keys that actually unlocked the door to the building, could we?
What I learned through this building acquisition is such a testament to how PLF does business. We approach every client as a partner on their journey towards their real estate dreams. We assess their needs and go into each transaction with a positive mindset. Our clients know that we have their best interests in mind as we help empower them to make these life investments. We have integrity, perseverance, a tenacious drive to face adversity, and follow through to get the job done. But most importantly, we are a true team. We lean on each other and push each other to see and achieve our potential.
I know these values will propel us forward. Now I just have to open the doors.
If you are looking to buy, sell or invest in residential or commercial properties, contact Herb Diaz at 562-249-1374 or herb@plfrealestate.com.
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