|
"As Long As Our Ships All Sail In the Same Direction"
By Joel S. Pate
Yes, the title of this article is a quote from the Godfather movie. If you can develop relationships with business partners in which everyone is motivated toward the same outcome and all the partners' interest are in alignment, then you will have a business structure that is stronger together than apart.
Every successful mortgage originator I know, the ones that have business day in and day out, the ones that are in the business over the long haul, the ones that you want to emulate, all, every single one of them, concentrate on the purchase market.
Booms and busts come to the purchase business too. We are experiencing one right now. And booms and busts come to the refinance market too, right? Yes, we are experiencing one of those right now as well.
I'm an old builder and real estate developer. During that time, I knew that whether times were good or times were bad, I still had to sell something to someone. Perhaps I sold smaller houses during the bad times, but, I still had to sell. Why? I had bills to pay. I had kids to send to school. And, I wanted to live at a certain financial level.
So, what does that mean to you the originator? Simple, you develop a partner that is working hard to do what you need to do as well: Pay your bills. With a partnership of two people needing to pay their bills, you have a better chance of stabilizing your income through the purchase business as compared to the refinance market.
How many times has a refinance customer walked on a lock simply because rates moved a little or another originator promised them a better deal? Or, the consumer just lost their motivation when the rate increased 10 bps. You know what I am talking about. With the refinance business, the consumer's motivation changes over the slightest movement. And guess what, there is no "partner" in the deal to help you talk the consumer back into the deal like a builder or real estate agent will be able to on a purchase transaction. The inability to sustain motivations in a transaction sinks financial ships.
Purchase business, even in the worst of times, is still available. I have quoted Robert Kiyosaki many times. Robert tells his students to learn to make money when the market is good and when the market is bad.
Can you imagine a situation developing whereby potential sellers can’t sell or refinance because they owe more on the house than it is worth? Yes? Well of course. Many of you are experiencing that situation now. Does that sound like a problem to you? Or does it sound like a business opportunity?
If you are a businessperson, and you are training yourself how to make money in all markets, you know that it is actually a business opportunity. The short sale will become the norm of thousands of transactions in your market place. While I do not know the particular laws in your area, you must if you decide to enter this arena. I do know that you can become an expert and make money by learning to negotiate with lenders on behalf of the seller or the borrower that needs to refinance.
Consider the following scenario:
You educate yourself on the law in your state and on the details of the market conditions including time on the market, values, etc. Start with your own company's closings over the past 18 months.
On a spreadsheet, you analyze the condition of the transaction:
• Original purchase price
• The lender's contact info
• Estimate of the loan amount (actual will be better)
• Time frame for reset
• Ability of the borrower to afford the reset
Then, negotiate with an appraiser and a real estate agent to partner with you and provide services on a closed transaction basis. Develop communication/marketing material that speaks to the consumer and to the lender. Work together with your partners to determine a course of action on each property. Contact the owner to communicate your findings. The listing agent can list the house if that is the determined course of action. You can help the borrower qualify for another loan on a new purchase. Your team can communicate with the lender that a short sale will be forthcoming and work to determine an acceptable value reduction.
Sound like a lot of work? Well, who ever promised you that you could sail through life on a flowery bed of ease? Yes, it’s work, but, to me, it sounds like money.
What have we accomplished with this business scenario?
• You get two loans if you work really hard
• Your agent gets a listing and a sale, perhaps
• Your appraiser has two appraisal opportunities
The lender wins, the consumer wins, the new homeowner wins and above all, you win!
Not only have you made money, but also, you have developed a business relationship that will allow you to have built in business partners driving you business so that they can make money. Always strive to develop mutually beneficial business relationships in which your ships all sail in the same direction.
I realize this is a complicated concept and that I have only presented you with the "tip of the iceberg" information. Would you like to know more? Let me know in the comment section of the link below.
PS: Many of you have taken advantage of my offer to provide you with six months free service to Greg Frost’s The Daily Communicator™. TDC is a marketing program that Greg developed, and that he uses, to market to the agents in his city that send him over 1,300 transactions per year.
Marketing to agents, and having something professional to say, is the key to getting their business. If you would like to know more, click on the link below.
For a limited time only, not only will I provide you with TDC FREE OF COST FOR SIX MONTHS, I will provide you with Greg’s Road Map to Success with Realtors. In this information packed program, you will see Greg’s keys to success in controlling the purchase transaction. Do you know that the agent’s customers go to the mortgage company that they recommend over 70% of the time. Now that’s control. Increase your business two or three deals per month just by partnering with two or three agents. I’ll show you how.
If you would like to take advantage of our customized weekly update form, and our daily marketing program to real estate agents, go here and test drive it for free: 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.
More stories by Joel S. Pate
| 
