Clay Johnson: Hi there guys. Clay Johnson, Castle & Cooke Mortgage. I’m excited to be here with Cheryl Knowlton from Dynamite Productions. The great background you’ve had over the years on both the mortgage and the real estate side.
Cheryl Knowlton: I know, I’m so crazy. 20 years next month. Can you believe it?
Clay Johnson: I know. It’s crazy. [inaudible 00:00:20] is you speak from experience as you guys know and she’s truly dynamite to listen to. But we wanted to talk today about some of the don’ts as we talk about things to avoid and not getting caught in and doing the wrong thing. What are some things that you’ve seen Cheryl over the years that hey real estate agents, we need to make sure we don’t do these things?
Cheryl Knowlton: Way too much creativity. And we might actually turn this into two videos. So just off the top of my head, a few are the real estate agent representing the buyer, adding the buyer to their personal checking account so that they could have bank statements to show to the underwriter.
Clay Johnson: Yeah.
Cheryl Knowlton: Yeah, that’s a hard no. The real estate agent accepting earnest money in cash and depositing it into their own personal account. Hard no. So that’s a do not pass go. Do not collect $200. The division of real estate will want your real estate license if you do that. So that’s highly problematic.
And a real estate agent taking earnest money, having the check made out to them personally rather than to the buyer’s brokerage trust account or whatever is agreed to in the real estate [crosstalk 00:01:26].
Clay Johnson: Yeah. It seems to make sense you don’t do that. But people still get caught up in that though, don’t they?
Cheryl Knowlton: They absolutely do. It goes back to the amazing poem that you shared, which was so powerful. If you have not seen that from episode one of this week, you need to go back and watch that. Selling eternity for a toy, it’s not worth it.
Clay Johnson: No. And sometimes, and that’s why we’re looking at that commission or that compensation. Maybe things are a little tight that month or that particular moment. Don’t slow down. Take a deep breath. It’s not worth it.
Cheryl Knowlton: Absolutely. And don’t ever make any exceptions. We do it once. It’s easier to do it a second time. So with that, we will leave you this time and invite you to come back for episode three on what not to do.
Clay Johnson: Yes. See you guys.