Podcast Summary: "Getting Deep with Tom Davis" | Coffeez for Closers with Joe Shalaby Ep. 42

Release Date: October 2, 2024
Host: Joseph Shalaby, Broker and CEO of E Mortgage Capital Inc.
Guest: Tom Davis, Chief Sales Officer at Deep Haven Mortgage

1. Introduction

In Episode 42 of "Coffeez for Closers," host Joe Shalaby welcomes Tom Davis, a seasoned professional with over two decades of experience in the mortgage industry. Tom serves as the Chief Sales Officer at Deep Haven Mortgage, a leading lender in non-agency and Non-Qualified Mortgage (Non-QM) lending. The episode promises deep insights into growth strategies, effective leadership, and the evolving landscape of the mortgage sector.

2. Tom Davis’s Early Career and Entry into Mortgage Industry

Tom Davis shares his journey into the mortgage business, emphasizing his proactive approach and strategic thinking from an early stage.

• Career Beginnings:
  "I started pretty much right out of college and I have a degree in finance and management..." (00:58)

• Strategic Move:
  Tom recounts validating a potential employer’s income before committing to a move, demonstrating his foresight and business acumen.
  "If this guy's making X, right, I'm going to make 2x. So I was in the wholesale space for, let's call it four or five years..." (04:30)

3. Navigating Market Challenges and Excelling in Down Markets

Tom discusses his resilience and success during the financial crisis, highlighting his adaptability and focus on niche markets.

• Adaptability During Crisis:
  "I ended up getting a job at JPMorgan Chase in a small division there called the Rural Housing division, and crushed it for eight years..." (05:54)

• Success in Down Markets:
  "In down markets, you have to hustle out, hustle everyone else to drive the production." (05:55)

4. Passion for Non-QM Lending

A significant portion of the discussion centers around Non-Qualified Mortgage (Non-QM) lending, its importance, and growth potential.

• Defining Non-QM:
  "Non QM is more common sense underwriting, manual underwriting." (11:05)

• Market Growth and Strategy:
  Tom elaborates on Deep Haven Mortgage's focus on serving entrepreneurial and self-employed borrowers, citing statistics that underscore the demand for Non-QM products.
  "Non QM is meant for self-employed... 26% of purchase transactions in the United States were investor transactions." (11:05)

5. Future of Non-QM Lending

Tom provides an optimistic outlook on the future of Non-QM lending, anticipating its continued expansion over the next decade.

• Growth Projections:
  "Non Kim continue to grow in a major way over the last next 10 years... private credit is coming in. That's where we kind of fill that void." (18:12)

• Competitive Advantage:
  He emphasizes the necessity for originators to adopt Non-QM products to remain competitive.
  "Every single one. If you're not doing non qm, you're at a competitive disadvantage and you're not surviving in this environment." (30:39)

6. Leadership and Motivation

Tom delves into his leadership philosophy, stressing the importance of hustle, expertise, and treating clients as advisors.

• Hustle Mentality:
  "If you want average Success is a 40 hour week. I like to work 80 hours a week. So more effort, more success." (02:22)
  "You gotta have the hustle muscle... you gotta wake up, outwork everyone..." (20:22)

• Expertise and Advising Clients:
  "Be an advisor to your referral partners, an advisor to your clients. You have to be, you know, help them not just by offering service, but pick up the phone and become a product knowledge expert." (21:17)

7. Fostering Talent at Deep Haven Mortgage

Tom highlights Deep Haven Mortgage's commitment to growth and talent acquisition, underscoring the company's robust capital structure and diversified exit strategies.

• Growth Amidst Market Downturns:
  "We've grown our customer base 4x5x in a down market." (23:53)

• Capital Structure and Stability:
  "With our parent, we have a diversified exit execution... we have the ability to securitize." (26:09)

8. Personal Life and Family Influence

Tom shares how his family has been a cornerstone of his motivation and work ethic, emphasizing the values he instills in his children.

• Family as Motivation:
  "I work every day for my family and my kids and so they motivate me..." (22:09)

• Raising Gritty Children:
  "They see me work. I always tell them, you know, my story and you know, what it takes and how hard it is." (34:29)

9. Advice, Mentorship, and Financial Literacy

Tom offers valuable advice on wealth-building, the importance of education, and the role of mentorship in personal and professional growth.

• Wealth-Building Strategies:
  "If I was 20, I would buy a ton of real estate... real estate is the way to go because it's a great hedge against inflation." (37:01)

• Importance of Mentorship:
  "Surround yourself with mentors and lean on them and ask them for the advice." (40:07)

• Educational Investments:
  "I've had some mentors in life and you know, very highly, highly, highly successful." (35:40)

10. Overcoming Personal Challenges

Tom touches upon personal hardships, including the loss of his father and grandmother, illustrating his resilience and ability to maintain professionalism in the face of adversity.

• Personal Losses:
  "The most painful thing, probably a passing of like my father... he had already passed away..." (40:38)

11. Key Takeaways and Conclusions

Tom Davis imparts several key lessons for success in the mortgage industry and entrepreneurship:

• Hustle and Hard Work: Continuous effort regardless of market conditions is crucial.

• Expertise and Client Advisory: Being knowledgeable and acting as an advisor differentiates successful professionals.

• Market Adaptability: Embracing niche markets like Non-QM lending provides a competitive edge.

• Mentorship and Education: Seeking mentors and investing in financial literacy are foundational for long-term success.

• Family and Personal Drive: Personal motivations, especially family, fuel sustained professional dedication.

Notable Quotes

1. On Hustle and Success:
   "If you want average Success is a 40 hour week. I like to work 80 hours a week. So more effort, more success. No effort, no results."
   — Tom Davis (02:22)

2. On Non-QM Importance:
   "Non QM is meant for self-employed... 26% of purchase transactions in the United States were investor transactions."
   — Tom Davis (11:05)

3. On Leadership Philosophy:
   "Be an advisor to your referral partners, an advisor to your clients. You have to be... a product knowledge expert."
   — Tom Davis (21:17)

4. On Family Motivation:
   "I work every day for my family and my kids and so they motivate me..."
   — Tom Davis (22:09)

5. On Wealth Building:
   "If I was 20, I would buy a ton of real estate... real estate is the way to go because it's a great hedge against inflation."
   — Tom Davis (37:01)

6. On Mentorship:
   "Surround yourself with mentors and lean on them and ask them for the advice."
   — Tom Davis (40:07)

Timestamp References

• 00:04 – Podcast Introduction
• 00:48 – Tom’s Background Introduction
• 02:22 – Hustle and Work Ethic
• 05:54 – Navigating the Financial Crisis
• 11:05 – Importance of Non-QM Lending
• 18:12 – Future of Non-QM Lending
• 21:17 – Leadership and Advising Clients
• 23:53 – Growth and Talent Acquisition at Deep Haven
• 22:09 – Motivation from Family
• 34:29 – Raising Gritty Children
• 37:01 – Wealth-Building Advice
• 40:07 – Importance of Mentorship
• 40:38 – Personal Losses and Resilience

Note: Timestamp links are placeholders and can be adjusted to link to the actual podcast episode if available.

Conclusion

Episode 42 of "Coffeez for Closers" offers a comprehensive look into Tom Davis's expertise in the mortgage industry, particularly in Non-QM lending. His insights into leadership, market adaptability, and personal motivation provide valuable lessons for professionals and entrepreneurs alike. Tom's emphasis on hustle, expertise, and mentorship underscores the keys to sustained success in a competitive landscape.