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Finding your niche
By Joel S. Pate
Last week, we discussed the idea that you should be operating your business with a purpose.
During the past week, I have had the opportunity to travel throughout the country to have face-to-face meetings with many of the mortgage originators that I have had the pleasure and good fortune of being introduced to through this article.
I can tell you and have actual proof: originators, just like you, that are operating their business with a defined purpose are prospering, even in down markets.
Today, I heard about an originator that has already surpassed last year's production, in the first nine months of this year, because, he says: "I redefined my business, developed a plan, and have proceeded to implement the plan."
Whether your purpose is to follow the advice of this column, becoming an expert in the one time close construction perm loan or you choose another niche in this great business; you must become an expert, tell everyone in your market that you are "The Expert" in that niche, and prepare to increase your volume.
A few reasons to consider the OTC-CP niche:
- Average loan size is over $100K above the re-sale market in most areas of the country
- A builder is a great, I believe the best, referral source. No other referral source has the ability and absolute need-motivation to maintain a consistent volume of business. That translates into loans for you. If the builder's volume is inconsistent, he will be unable to maintain his sub-contractor basis. As a result, his production will suffer, his pricing will be erratic, and he will run the risk of missing commitments on lot take downs, etc.
- Builders are absolute creatures of habit. Once you have become a builder's preferred lender, and one that brings him consistent results, he will become more loyal to you than any other referral source you can name.
Well, that's three and there are many more.
This week, I had the pleasure of meeting the one homebuilder in the country that has sponsored more homebuilders to the National Association of Home Builders that any other homebuilder, ever. I have asked this gentleman to write an article that will be found in this column in the coming weeks. Stay tuned to find out what this homebuilder has to say about our program and how it would "absolutely positively" impact every builder's balance sheet and personal lifestyle.
As you know, in these short articles, I am only able to present the outline version of the information. If you are interested in the full version of this information or would like to join one of my conference calls on this topic, send me a request by visiting www.vadiumgroup.com/cpexpert.php.
Dedicated to coaching YOU to CP loan success!
Joel S. Pate
Joel S. Pate, a dedicated entrepreneur, has spent more than two decades in the building, mortgage, and real estate industries and has been involved in over $100 million in construction loans and over $1.3 billion of residential lending.
As the CP LOAN EXPERT columnist, Pate provides straightforward, unbiased advice about every aspect of construction permanent lending. If you ever wanted to unravel the mystery surrounding new construction lending, then you should tune in.
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