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IF YOU DON'T TAKE THE APP, YOU CAN'T WRITE THE BUSINESS
By Joel S. Pate
My future son-in-law is a new insurance agent and real estate agent. After working for a computer systems company for years, after months of study, he is ready to make his own way.
Right? Well, he has his license. Now what?
Many of the readers of the column are new to the business and just as many of you have been around as long or longer than I have and could teach me a few tricks. I thought after last week's article about killing a dead horse, I mean about not kicking a dead horse that we should start with a few basics about how to build a business from the ashes or from scratch.
Selling insurance is a little different that selling money, but, they are the same in at least one way: The person wanting to do something can't do it until he gets you to loan him the money and an insurance agent to insure it.
Just think for a few minutes about that statement. In order for most people to purchase a home, a car, a business, a boat, etc., they have to borrow money. In order for the lender to loan them the money, they must obtain insurance.
That means, if you want to sell insurance or loan money, you must manage to know where the epicenter of these transactions are taking place and be prepared to be the person that provides the service that is required for the consumer to complete the transaction.
Sounds easy, right? Well, it really isn't that difficult if you break the concept down. Let's look at a few highlights of what you should consider:
1. Break down your market into the following segments:
a. New homes
b. Resales
c. Rehab
d. Small commercial
e. Refis - either cash out or rate and term
2. Now, let's break down why consumers are purchasing or selling
a. Want a bigger house and /or want to live in a better area
b. Moving up or moving down
c. Adding on
d. Divorce
e. Transfer
f. Small business person expanding/contracting
g. Need money or lower payments
3. Entry points to leverage yourself into the transaction and add value
a. Lawyers and accountants
b. Human resource departments
c. Open house in smaller home areas (especially FSBO)
d. Open house in larger home area or retirement areas
e. Rehab contractor
f. BNI referral meetings
g. Everybody: CPA, lawyer, real estate agent, homebuilder, etc.
Now, two questions I want you to write down on a piece of paper:
1. Who do you know that fits into one of these categories?
2. Who knows you fit into one of these categories?
Really, write the list and be honest with yourself. I'll bet that you, like me, have a longer list of people that you know of than of people that really know you and that will refer you to their family and friends when the need arises for a money decision regarding your lending expertise. You've got to work on changing that.
Talking about the list, I think you should use an excel spreadsheet to type in the builders you know, the resale agents, lawyers, accountants, human resource officers, small business owners, rehab contractors, etc. Make a good list. Think of it as a briefcase of money.
Now, how do you get to know more of the right people personally so that they will invite you directly into the epicenter of a transaction?
1. Start by knowing your business
2. Start small and only take on the group initially that you really feel the most comfortable with
3. Don't act like an ambulance chasing lawyer with the wide eyes of expectation that they are going to give you a loan right on the spot
4. Be yourself
5. Do something kind for them to help them get where they are going
6. Join a club
7. Go where they are and spend time together working on something
8. Again, start small.
I'll give you a couple of ideas of where applications are hiding that I gave Jonah, my new future son-in-law, for the insurance business. Maybe it will get you thinking about your business too:
1. Car dealers
2. ATV and motorcycle dealers
3. Boat dealers
4. New home sales agents
5. Resale agents
6. Apartment complex new tenants (renters insurance)
7. His dad's builder buddies for builders risk and for their purchases
8. New small companies (business license department)
9. People at the bank
10. FSBO (quote their current house for their prospects and their future house; don't forget the cars and life and disability)
11. Etc.
Well what about a list for the loan originator:
1. Sit with new agent every week for one hour at an open house and bring refreshments.
2. Go to homebuilder and Realtor meetings and get on a committee that you feel passionate about. Meet those agents and builders that feel the same way.
3. Ask your favorite agent to let you pre-qualify all of their sellers to get ready to purchase their next home.
4. Provide a good faith estimate on each listing of your favorite agents and builders.
5. With the agents you like and trust, have a one hour per week master mind meeting to discuss ways to work together to generate leads.
6. Correctly operate a first-time home buyer seminar once a week.
7. Prepare a lunch topic speech for local Sertoma Club and Key Club, etc. (along with a well known banker if you don't know how to yourself) based on "How to obtain the money to grow your business." Why? Because the majority of new business start up or growth requires the owner to do a cash out or at least add a HELOC.
8. Ask a local business if you can provide a homeownership day and meet individually with each person that would like to purchase a home.
9. And of course, use my referral partner marketing program The Daily Communicator to effortlessly communicate everyday with the agents in your market and listen to the two minute recordings from Greg Frost and other great originators and speakers each and every day.
You see, it's all about the people at the epicenter of a transaction that demands insurance or a loan knowing that you are the person they want in this deal with them. It is unlikely that you can reach that level without laying the ground work. Yes, it's hard work, but, it is proven to work.
Remember, "IF YOU DON'T TAKE THE APP, YOU CAN'T WRITE THE BUSINESS."
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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