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Dreams (Part 2 of 2)
By Joel S. Pate
In last week's article, we dealt with the subject of having a dream and how the power of that dream helps you to overcome many of the obstacles that we all face. The power embedded in that dream will enable you to rise early, stay late, learn what you need to learn and to bear up under the circumstances that cause others, those without a dream, to fail. Actually, the reality is that a dream gives you the power to get up after you fail, if you fail, and try again.
Yesterday I had the opportunity to interview my good friend and business partner Greg Frost. Greg and I recorded a new program entitled "Roadmap to Success with Real Estate Agents." After reviewing the comments I received from last week's column, I realized how many of you need a "Roadmap to Success" as well, and that is exactly what I would like to provide for you over the next few weeks in this column.
The fact is that you only know what you know, because you have only learned what you have learned. And you have only learned what you have learned because you have been exposed to it. Actually, let me adjust that to: You only know and learn as much as you expose yourself to.
Everyday we have choices. We choose whether to watch the same TV shows over and over, meet with the same people over and over again, talk about the same things over and over, or, we choose to get out their and meet new people, read new books and new articles, watch better TV shows, go to seminars, etc.
With that said, I would like to reintroduce you to the world of one-time close construction perm lending for small to medium size builders in a step by step manner.
Let's start with the title. Why is our program for small to medium size builders? Why not for individuals or families? Why not for those who desire to build their own home?
Well, the answer is really very simple: You never want to concentrate your efforts on a segment of the market that can only produce one or two loans. Your initial marketing efforts in a new niche, especially this one, should be to a group that will produce multiplication for you, not just addition.
Your goal as an originator should be to only concentrate on sources of business that can produce business day after day, month after month, year after year. That's why I suggest that you concentrate on small and medium size builders, because they have customers on an ongoing basis that need loans. Remember: go where the loans are. Better yet, go to a person that is doing what it takes, in their business, to generate customers that need to borrow money. That guarantees multiplication for you.
If you become the preferred lender for a builder that sells five homes per month, and if you become an expert in the niche market of CP loans, and you continuously demonstrate that expertise to the builder and to the builder's customers, you will have a referral source that sends you up to five loans per month. Now, if you want 10 loans per month, you just need to find another "five homes per month" builder.
The key is to wait until after you understand exactly how the builder will directly benefit from programs you have to offer to ask the builder for their business.
You must have an idea of what the builder is facing, how you can help him, and how to articulate that message to him. You really need to know, you really need to understand, you really do need to be an expert.
Let me ask you a question: Do you know the expert car repair person in your market? Do you know the expert plastic surgeon your in market? Do you know the star basketball or football player in your market? Why do you think they are the expert? Did they tell you they were the expert? I'll bet they didn't. I'll bet they have been working on becoming an "overnight" success for a long time. I'll bet that they dedicated themselves to the journey long before anyone ever heard of them.
I'll even bet that they never told anyone "Let me do your nose because I am the expert."
Instead, they obtained the credentials after much disciplined effort, they began to do a great job with their patients/customers, and they began to write newsworthy articles or give interviews on their area of expertise. They carefully managed their business, they carefully managed their persona. And last but certainly not least, they did a great job. Actually, you would have to say, they did an expert job.
For many of you, you need a quick fix. You need to enter into this niche much sooner than later. You need some business. But please take my advice and don't get ahead of yourself. You must do at least some research to understand the basic concepts before you blow the one chance you will get when you talk to a builder.
You must understand the problems that your customers face. You must understand the language needed to relate to them. You must be on the way to becoming an expert. You must expose yourself to something you do not know in order to become something that you are not, but, that you need to become in order to go to the next level in your business.
Let me give you an example that will blow your mind (or at least it did mine). Yesterday, one of my coaching members called me to ask, "Can we do this type of loan?" I said, "No. No one will do that type of loan." He said, "Well, I told the builder that we could do it." I said, "Well, you'll need to call him back to tell him you can't."
Then, in frustration, I said, "HAVE YOU READ THE MATERIAL THAT YOUR BOSS PAID FOR? HAVE YOU LISTENED TO THE TRAINING MATERIAL? HAVE YOU PREPARED YOURSELF?" The answer of course was no.
He went on to say that he was having a hard time getting builders to agree to an appointment. Of course, I said, "WELL, I DON'T DOUBT THAT. YOU ARE NOT PREPARED AND IT IS PROBABLY VERY APPARENT TO THE BUILDER'S THAT YOU HAVE CALLED. You don't even know the type of CP loans that can be originated!!!!!"
Can you imagine what else you don't know if you don't know the type of loans a builder's customer can expect?
Well, needless to say, that is exactly why it is imperative to be prepared. Remember: Days of preparation are never wasted, but, many times, opportunities with potential referral sources are wasted because the opportunity seeker has not prepared accordingly.
Over the next several weeks, we will begin to dive into the depths of the concept of off-balance sheet financing in this untapped field. I read this week that less than one-third of all construction projects are financed utilizing this unique method. I can tell you without a doubt: if you learn this business and execute on it correctly, you can set your own limits, you can be the top money earner in your market, you can become financially free.
Dedicated to coaching YOU to CP Loan Success!
Joel S. Pate
To review last year's articles or find out more about the exciting niche market of off-balance sheet financing to small to medium size builders; contact me via my website at www.vadiumgroup.com/cpexpert.php.
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 $4.5 billion of residential lending.
As the CP LOAN EXPERT columnist, Mr. 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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