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DID YOU DO YOUR HOMEWORK?
By Joel S. Pate
In last week's article, you were given a home work assignment. Did you do it? I hope so. Someone famous was quoted saying: "Days of preparation are never wasted."
As you know, I harp on this one topic more than any other. The riches go to those that prepare and then act and then prepare and act again and again and again. That's the only way.
Builders need you. That's right. They need you. Every business person on the planet is looking for people/originators/experts to come along side of them, and carry part of the load.
The following statements are obvious but need to be said:
- A builder depends upon the developer to develop lots.
- A builder depends upon his subs, the bank, real estate agents.
- And finally, a builder depends on a loan originator to complete the transaction with the borrower, his customer.
You can be that loan originator, but, just like the builder's other sub-contractors and associates, you must be prepared. The builder will only be as good as the people working with him.
That is why the builder is so hard to see. He has people call him every day wanting something from him. If you are prepared and are able to present him with true solutions, he will listen to you, he will consider your proposition, and in many cases, he will give you the opportunity to prove yourself.
So you say, "I want to be that person." Then do the homework:
- Determine your lender's owner-occupied, investor, and second home loan products.
- Determine the type of borrower the lender is targeting with their programs.
- Identify the builders that have clientele and build in that price range, market, etc.
- Look for a way to network with the builders that would be the easiest to contact (i.e., the low hanging fruit)
a. Are you friends with an agent that knows a builder well?
b. Are you friends with an insurance agent or title agent that the target builder uses?
c. While you should join the Homebuilders Association, that is not the best place to start.
d. Look for a person that knows a builder you are targeting and ask them to introduce you.
- Start your research by acting on my Tip of the Day!
TIP OF THE DAY (for the second week because it is such a good tip): Call a real estate agent that you do business with. Ask them this question: "Would you be interested in working with me to develop some builder business if I can guaranty that you will receive your commission on the transaction approximately three or four weeks after the contract is written, instead of waiting until the home is completed?"
The only answer will be: "WHEN CAN WE GET TOGETHER". GUARANTEED.
If you would like to receive additional information regarding One-Time Close Construction Permanent lending, 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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