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Rebounding from a Dwindling Market, Part II
By Joel S. Pate
Sowing and reaping is a well-worn subject in many circles and just as likely, you may have never heard the term. The concept is the basis of all effort and can be used to describe most everything.
For example, if you don't make a good grade on a test at school, one could say, you didn't study:
a. Hard enough (sow)
b. Long enough (gestation period)
c. Often enough (both prepare the ground and keep the weeds from choking the crop)
d. And then didn't harvest correctly (didn't get a good nights sleep, eat a good breakfast, etc.)
There are numerous untold examples of the law of sowing and reaping.
Some would also say that there is a "time" to sow and a "time" to reap. That is for sure. For example, right now, would you say it is the RIGHT time to get into the mortgage business, to sow into that field?
Was your answer "Yes?" If so, then why? If "NO" was your answer, why, why, why?
Over the next few months, more and more originators will get out of the business. It was just six months ago that many of you were saying, "It seems like everybody and their brother has become an originator. There are just too many originators quoting lower and lower rates to make a living." Well, now their all getting out of the business. Isn't that good?
With a little tongue in cheek I make that statement. Listen, this is all I've ever done. First as a real estate agent, then as a builder, then both, then as a down payment assistance company owner (still), then I owned six mortgage companies, then, I worked to help you guys develop the skills necessary to understand the construction perm business.
I KNOW THAT MANY OF YOU ARE HAVING A HARD TIME MAKING A LIVING. I KNOW WHAT IT FEELS LIKE FOR THE PHONE TO NOT BE RINGING.
That reminds me of one of the guys that worked at one of my mortgage companies: He would call me and say "I got me one." I thought he had been fishing. He was talking about a loan. "I got me one." It sounded like he was surprised. It sounded like the time I was fishing and we drove through a school of fish. There were so many fish; the hook simply caught one of them in the side. I had "GOT" me one.
Catching fish, creating a marketing program(s) that bring loans in the front door on purpose, is work, an art, a science, a group of business activities that are a part of your process that you have developed and that work in good markets and in bad. Over the past few years, many of you have been trolling (that's the right way to say driving through fish) in an area where a lot of fish were active, and just got lucky. You "GOT YOU ONE."
Well, now that so many of these "got me one" originators are going back to the their other profession, it's time for those of us that are serious, those of us that this is our industry, those of us where real estate and finance is the only blood that flows through our veins, to get to work on implementing, measuring and re-implementing, and re measuring over and over again the marketing programs that are tried and true. Marketing programs that are guaranteed to have "fish" biting at your bait on a regular basis.
One of the best marketing plans I have ever seen is the one described in a past article, "13-15-5." It's available in the archives.
In a nutshell, the plan calls for you to work first on the agents/builders/customers that are part of the deal you are processing, presuming you have one deal that you are working on. If you don't I'll get back to you in just a minute, but, don't you dare skip ahead. The ONLY reason you do not have a deal right now, if you have been in this business, is because you did not follow the advice of the 13-15-5 marketing plan.
To succeed in this business, you must do a magnificent job on every aspect of the loan you are processing. You must speak to both agents at every possible milestone along the way. When you order the appraisal, when it comes in, when you receive verifications, and when you don't. During a loan process, you will never have a better time to speak to the agent, impress them with your personality, your ability, and your willingness to do a great job.
Just think: How many times have you left a voice mail for an agent that didn't call you back. Why? What selfish request did you make of them? Did you say, "Yea, Mr. Agent, 'I' want to talk to you about why you should be doing business with 'ME.'" ME, ME, ME, ME, ME is what you talk about. Instead, you've got to talk about "THEM, THEM, THEM, THEM, THEM, and then THEM, THEM, THEM, THEM, SOME MORE.
During a loan process, an agent is thinking of HIMSELF OR HERSELF more than even you may be thinking about YOURSELF. Why? You may have the one and only transaction they've had in a while and they are hoping, no, they are PRAYING, that you are doing a good job. At this moment, like no other moment in history, they are thinking about YOU and what you are doing to help THEM.
Now, like no other time, is the best time to SOW a seed into them about you. I've said this over and over again and I may be quoting someone else: "While it is important who YOU know (very important), it is even more important WHO KNOWS YOU." How many brain cells have you purchased, how many times have you successfully gotten the attention of an agent or a builder? Like no other time, this is the time.
Nothing will be better than calling or faxing the agents with an update. YOUR PERSONAL EFFORT IS BETTER THAN ALL OTHER EFFORTS. However great a personal effort is, you can only be in so many places at one time. For that reason, you need to develop an automated drip campaign that works every day.
One of the tools that are available to purchase the brain cells of folks in the business is The Daily Communicator. I know, you're thinking, this guy is trying to sell me something. Well, yes! Since everyone reading this article needs a communication device to market to agents in your market, and may not have the money to spend, right now, I'm going to give it to you to try for six months, no strings attached. Just send and e-mail to me at the address listed below, and I'll take care of it.
Why? Because I want you to begin to use a new tool that helps you increase your communication to the agents/builders involved in your current transaction.
What if you don't have a transaction to work on? Try one of these ideas:
1. Ask your manager if there are any "orphaned loans" in the house.
2. Partner with another originator in your office. One of you do the processing and the other do the marketing and agree to split the income on those deals that come in from your combined efforts.
3. If you work at a government shop (can you do FHA loans?), school yourself on how to structure a down payment assistance loan, on the terms, etc. and offer to give agents a free educational training (never ask for a loan while giving the training. Just BE the expert and they will call you with questions and you will hook them)
Talking about sowing! Find the right ground and sow, sow, sow. Tend the field, etc. Education is one of the best ways to be seen as the expert and one of the best ways to sow seeds into agents.
How you ask? Become, not act like, not talk about, but instead BECOME the expert in a particular niche, and agents, builders, newspapers, radio host, will begin to seek you out for your advice.
Do you think that anyone is interested in how to sell more homes right now? Do you think the media might pick up on this story? Do you think you can get the attention of a builder? Do you think for sale by owners want to know? What about agents? If you can help them, they will listen.
Since I'm a purchase guy, that's what I talk about. If you can help a builder/agent/auctioneer, sell more homes, you will be indispensable. They will not only talk to you, they will talk about you.
Many of you need to get out of the office, get in your car and drive around. Go into the open houses, especially on Sunday. THINK, THINK, THINK. What is going on in your market? If it is auctions, how can you interject yourself in that process? If bottom fishers, real estate investors and the like have come into the market, who are they, and how can you help them? If it's not that bad yet, but listings are sitting on the market longer and longer, help them by looking into loan programs that may assist them in making the home more attractive (down payment assistance).
The key for you is to think. Get out of the office. Get in front of somebody needing to purchase or sell a home. Then, do a perfect job on the loan and communicating to everyone in the transaction.
Regardless of the market, you can make it if you do what it takes, on time, before you are asked, long enough.
If you are interested in seeing more strategies like this, visit 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, 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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