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Ilend2u
54 Posts |
 Posted - 08/24/2007 : 11:49:47 AM
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All of this negativity is driving me crazy, and instead of jumping outof the window in my office (I'm on the first floor so it won't hurt that bad), instead I will put it on paper.
Who am I?
A 20+ yr "veteran" of the mortgage biz (all on the retail origination side)in northern california. I have been thru the ups and downs before. This down is by far the worst, primarily because A. there are soo many people who got in this biz in the last three years and B. I have never had an industry basically come to a stop because lenders can't lend.
what do I see happening-
This down turn will last awhile, how long, I don't know but we HAVE NOT seen the worst yet. After the darkest day, the market will return to resonable levels where those of us left will be fine.
Who in the industry do I feel sorry for-
Not that many people, perhaps the longtimers who have been pushed out of the business by the bait and switchers who lied to steal business from the longtimers. Now because there is a lack of businees and there are three loan officers for every one loan, the longtimers who spent years developing their business are having just as hard time. Certainley not for the people with no experience who were making 25-50k a month, driving a benz, buying a big house just because they could pick up a phone, lie to a borrower and make $$. You were not loan consultants, you were a thief, thank god you made your money, hopefully you saved it.
What should you do-
If you can afford it, now is a great time to take a vacation. At least take some time off and spend it with your family. Most of us worked our tails off the last couple of years and probably did not spend enough time with them. Now is a great time to take advantage of it.
If you can't afford to take a month or two off, most likely you are a newbie who didn't expect this gravy train to end. If you have been in the business for the last three years and did not put away the money because you thought it was never going to end, learn from this (remember all of the stock market millionaires in the early 2000's?). Unfortunatley I would say get out of the business. Throwing good money after bad (buying leads, overhead, etc.) WILL FINACIALLY BREAK YOU. You are better off not doing ANY loans right now, then risking 10-15k a month in marketing for the hopes of a return( see my stock markt notes below)The stress this will put on you and your family is not worth it. Take a step back, regroup and move on. When the market DOES come back, you won't make near the money you made the last couple of years. It will be a different business. Don't go down with the ship.
What am I doing-
Well I made money, I put a lot of it away. In addition I bought a house 3 years ago for 600k after selling a house for 450k (200k proceeds from the sale). I put down 5% on the new house, why? Well my friends were telling me I should put down the 200k because "this gravy train IS going to end". I tried convincing them without sucess that having the 200k in the bank will help me last when the gravy train ends. Would I rather have that money in the bank or disappearing in equity in my house. I don't plan on walking away from my house, but if it comes down to saving my house or saving my family, I'm taking number 2. Again why throw good money after bad.
I have the resources to take some time off and wait for it to blow over. I am emailing all of my past clients letting them know I am still here and will continue to do so in one way or another every couple of weeks so they know they can call me if they need advice. But I am not doing ANY other marketing except for handing out business cards and building a database of names.
In closing-
Just like the people who made millions in the stock market and could not tell you what a P/E was, most of those people lost ALL of that and then some. Many tried buying Cisco on the way down instead of cashing out and waiting for the bottom (who |
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boston42
250 Posts |
Posted - 08/24/2007 : 12:00:35 PM
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| TOUCHE!!!!!!!!!!!!!!!!!!!! |
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shauna559
62 Posts |
Posted - 08/24/2007 : 12:01:16 PM
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| very well said |
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Rampart
1284 Posts |
Posted - 08/24/2007 : 12:04:03 PM
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Nice rant with some great advice.
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mortgagemessiah
8003 Posts |
Posted - 08/24/2007 : 12:07:20 PM
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| A successful individual in this business once told me that if endure multiple down turns in this industry you will die a very successful man. |
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keckpas
1176 Posts |
Posted - 08/24/2007 : 12:13:19 PM
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Good rant with some sound advice.
Steve, I like your quote as well.
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rainmand
5205 Posts |
Posted - 08/24/2007 : 12:33:54 PM
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| I'm hoping the old timers will migrate to Reverse Mortgages. They'd be perfect. |
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paulsrates
270 Posts |
Posted - 08/24/2007 : 12:41:00 PM
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| Nice rant...especially for being your second post :) |
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racerx
12112 Posts |
Posted - 08/24/2007 : 12:55:28 PM
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I think that is the longest post that I have actually read in its entirety. =)
I'm not a newbie but I don't have 20 years under my belt either. I am basically doing the same thing. I am going back to school while it's slow and I will keep in contact with my past clients in case they need me. When the savings runs out, maybe I will get some student loans! =) |
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Ilend2u
54 Posts |
Posted - 08/24/2007 : 1:11:23 PM
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I'm surprised by the kind comments, I thought the "newbies" would rip me as a pompus ***. I guess there are still good people left in this business.
One thing I forgot to add....
What should we do as an industry to survive...
My personal opinion is that in the last couple of years, this business has become so competitive that we forget how we could help each other (me against him). I feel that by banding together more people can make it thru this. Pooling our resources (money) could help many of us survive. For instance, how many of you owners are sitting in an empty office right now? Why not blend offices together with someone else in your area. You do not need to combine companies, just locations. You are better having 4 one man comapnies in one location. Share the cost of office, phones, fax, copiers, processors (and/or recptionist). Do not work from home (for most people) because not only is it easy to be sidetracked, we are professionals, would you trust a doctor, lawyer, accountant who works from home? By sharing office space you should be able to get down to minimum costs for a full sevice office.
2nd (and more importantley for those without referral business)- Pool leads. For instance why not by an internet lead and split the cost with another person and you both call it. The internet lead company is going to sell it five times (if not more) anyway. Then you can buy a $30 dollar lead for $15 or $10 and everyone calls it. You can each call the same internet company and pay thirty for the same lead, or you can pool up and pay $15. you will be able to buy twice as many leads for the same price.
Any other suggestions....
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brandenloans
696 Posts |
Posted - 08/24/2007 : 1:34:38 PM
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quote:
Originally posted by Ilend2u
All of this negativity is driving me crazy, and instead of jumping outof the window in my office (I'm on the first floor so it won't hurt that bad), instead I will put it on paper.
Crazy that ALL THIS NEGATIVITY would drive anyone crazy that only has 3 posts.
Is someone just randomly joining the negative train or is another member scared to post something like this under their regular name. I'll agree its negative but why create a new account to convey that message? |
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Ilend2u
54 Posts |
Posted - 08/24/2007 : 1:42:12 PM
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Brendan-
First of all, I only found this site from ml-implode a few days ago. Second, "all this negativity" has to do with the ENTIRE industry right now, lenders, appraisers, escrow officers, and yes boards like this. I'm sorry, I didn't know I had to post more than twice in order to be considered insightful.
Just out of curiosity, what would be the benefit to me to create a different name? Would that change the message? I don't understand, honestly (not sarcastically) |
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sc312001
1107 Posts |
Posted - 08/24/2007 : 1:49:51 PM
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| I just returned for 2 weeks at the beach with my family. I am back and more focused than ever. I am buying leads now, because I was focusing on bank/banker turndowns the last 18 months. I am re-educating myself to the fannie guidelines. Since I am a one woman show, I can price a deal & leave my competition in the dust. I have been self employed 6 of my 15 years in this industry. I really think that in our entreprenurial society, it's simply a matter of time before new lenders surface. |
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Ilend2u
54 Posts |
Posted - 08/26/2007 : 6:40:38 PM
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| bump |
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keckpas
1176 Posts |
Posted - 08/26/2007 : 6:48:39 PM
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quote:
Originally posted by brandenloans
Crazy that ALL THIS NEGATIVITY would drive anyone crazy that only has 3 posts.
Is it possible that they were lurking and reading? I know I watched the posts for quite a while before I joined. And yes, I see this was already addressed, but I really think too many people jump on the newbies. Who knows how long they have watched us banter back and forth! |
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waynepbright
3934 Posts |
Posted - 08/26/2007 : 6:49:11 PM
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Jeff,
Excellent Post here bud, I think it will open many eyes !
Take care, |
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servicefirst
3421 Posts |
Posted - 08/26/2007 : 6:53:37 PM
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Jeff,
Welcome to the Outpost!
Well put and stay positive. |
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ebaron
219 Posts |
Posted - 08/26/2007 : 7:03:53 PM
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yeah...great post...let's all stop working and wait til the market changes. People did make mad money, but there are a lot more good loan officers than bad. Hiding in a corner til the market turns is piss poor advice. How about "you made a ton of money easily the past couple of years. If you want to remain in this business, you will have to work three times as hard to earn three times as less. That said, this is a great business to be in, one that has withstood the test of time, and will still stand now. Take the lessons you have learned, the money you have made, and go to work earlier tomorrow, work later and treat this business as a career."
I hate your rant. It is usless, self deprecating, and serves no purpose except to bash some bad apples, that realistically have already left the business, or do not even know about this post.
Rather than spending all your time with the crappy words, get your ass to work. |
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ugaagent
334 Posts |
Posted - 08/26/2007 : 7:27:15 PM
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| I agree with ebaron. what sense would it make to quit working until it all blows over. How do we know it hasn't already and this is what's left? People still want to buy and will need the mortgages. why let a bank get it? We all essentially have a choice. We can stand rigid like a tree and let the storm uproot us, or we can bend like a reed in the wind and accept the fact that storms will come every now and then. |
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Ilend2u
54 Posts |
Posted - 08/26/2007 : 7:31:23 PM
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| My point about taking sometime off is that NOW is a good time to take a vacation, when business has slowed down and lenders can't decide if they should lend or not. |
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ebaron
219 Posts |
Posted - 08/26/2007 : 7:37:47 PM
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quote:
Originally posted by Ilend2u
My point about taking sometime off is that NOW is a good time to take a vacation, when business has slowed down and lenders can't decide if they should lend or not.
Not taking time off when it is slow is exactly my point. As a business owner, now of all times is the worst time to not be manning your office and business. If you bury your head in the sand now, you have no chance of surving. The sharp loan officers, and sharp businessmen are the ones that will survive, and take your clients if and when you ever come back in the business. I have my loan officers working harder than ever. We are buying more leads than ever, and advertising more than ever. Are our ROI drastically reduced? OF COURSE. That said, this is the course my company has chosen. The mortgage business is exactly that...a business. We are in a part of the cycle where we have to work harder, and have our ROI lowered, but it is what it is. |
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jstoub1
464 Posts |
Posted - 08/26/2007 : 7:46:09 PM
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Did you ever think, perhaps, that he is a one-man shop? Re-read the post about pooling resources...
In all honesty, someone with a family should take time off whenever they can/want, and not have someone insulting them by saying they are not "sharp" and "if and when they come back."
Jeff, great posts. |
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ebaron
219 Posts |
Posted - 08/26/2007 : 7:50:58 PM
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quote:
Originally posted by jstoub1
Did you ever think, perhaps, that he is a one-man shop? Re-read the post about pooling resources...
In all honesty, someone with a family should take time off whenever they can/want, and not have someone insulting them by saying they are not "sharp" and "if and when they come back."
Jeff, great posts.
If he is a one man shop, then perhaps he should stick to what he knows, rather than the following advice. This type of rant would then be useless foder, since he has no business offering his advice on what he doesnt know:
" Unfortunatley I would say get out of the business. Throwing good money after bad (buying leads, overhead, etc.) WILL FINACIALLY BREAK YOU. You are better off not doing ANY loans right now, then risking 10-15k a month in marketing for the hopes of a return( see my stock markt notes below)The stress this will put on you and your family is not worth it. Take a step back, regroup and move on. When the market DOES come back, you won't make near the money you made the last couple of years. It will be a different business. Don't go down with the ship."
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douglahu
232 Posts |
Posted - 08/26/2007 : 7:52:11 PM
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| Bad time to take off if you don't have systems to touch your clients. Data mine your database to see if you can help anyone, drop flyers, cards, anything to brand yourself. Now is the time to keep your name in front of people. There are less commercials on the radio, TV, etc. You can compete against the noise (less now than before). Educate yourselves on new programs, old programs, whatever. Be prepared when the cycle returns. I was in the Dot Com meltdown and you can survive if you have a business plan in place. Hope is not a strategy. |
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fishie
570 Posts |
Posted - 08/26/2007 : 7:52:24 PM
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quote:
Originally posted by Ilend2u
I'm surprised by the kind comments, I thought the "newbies" would rip me as a pompus ***. I guess there are still good people left in this business.
One thing I forgot to add....
What should we do as an industry to survive...
My personal opinion is that in the last couple of years, this business has become so competitive that we forget how we could help each other (me against him). I feel that by banding together more people can make it thru this. Pooling our resources (money) could help many of us survive. For instance, how many of you owners are sitting in an empty office right now? Why not blend offices together with someone else in your area. You do not need to combine companies, just locations. You are better having 4 one man comapnies in one location. Share the cost of office, phones, fax, copiers, processors (and/or recptionist). Do not work from home (for most people) because not only is it easy to be sidetracked, we are professionals, would you trust a doctor, lawyer, accountant who works from home? By sharing office space you should be able to get down to minimum costs for a full sevice office.
2nd (and more importantley for those without referral business)- Pool leads. For instance why not by an internet lead and split the cost with another person and you both call it. The internet lead company is going to sell it five times (if not more) anyway. Then you can buy a $30 dollar lead for $15 or $10 and everyone calls it. You can each call the same internet company and pay thirty for the same lead, or you can pool up and pay $15. you will be able to buy twice as many leads for the same price.
Any other suggestions....
Yes. Accept the fact you will make 30k in retail, and if you dont like it, then 500 other loan officers will be there to take your job.
If you have the connections, clientelle, and other industry contacts to keep your boss from demanding you take a paycut, then you are ripping yourself off by not just brokering the loans yourself and keeping all the profit.
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teamlend
570 Posts |
Posted - 08/26/2007 : 9:56:55 PM
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I don't get all of this, I have been busier than ever. Any Realtor in the Biz, or homeowner that wants a loan is jumping at the chance to get a deal done. The shopping has ended. I go to the Open houses and talk to Realtors every weekend. I let them know who is still in biz and who has folded. I bring the Realtor a survival snack pack and just talk to them. This is the first time in 5 years that they are taking the time to gain insight to the credit crunch at hand. The Realtor and the homeowner are all appreciating me taking the time to tell them what has happened to the market and what we need to do now to deal with the issues at hand. I was mass mailing for years and stopped last year because the ROI dropped tremendously. I have 6 outside Reps all doing the same marketing with phenominal results. I agree with EBARON, you wanna quit...then God bless you, quit! I want positive input from positive players on the B.O. Contribute to the well being of all here or do like the others and fade away! I have no secrets, just hard working and I put my clients and realtors before me. Maybe that's why I'm still very busy closing deals. Oh and a plug to Tsnyder...great program. It keeps my officers busy with results. I appreciate the help. In fact I will probably block this sight from my server if I see much more of this negative B.S.
Wow , I feel better |
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gf92626
56 Posts |
Posted - 08/26/2007 : 10:04:47 PM
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I agree - everyone PLEASE take a vacation... Get away! Spend time with your families, enjoy the sun, and let this all blow over.
Those of us who are closing 20-30 loans a month can continue to originate...
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