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eddiepazzo
125 Posts |
 Posted - 09/25/2007 : 4:54:19 PM
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It's time for me to expand my practice to include purchase business. I have (for the most part) avoided real estate folks. My early experience has not been great. I'd like to hear some of the success stories from those who read BO.
I already know that they suck and lie and cheat and are unreliable. I'd like to hear the upside.
How should I start?
What are the real pitfalls?
Is persistence the real key?
How do I tell them I don't sit opens or bring donuts?
How do I add real value to their business?
I need a small education.
Thanks from the Texan lost in Washington State. |
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brobob7
65 Posts |
Posted - 10/14/2007 : 5:44:22 PM
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Forget it, most realtors only want to take from you and not give back, at least that is my expeirence with them. If they give you anything, it will be something impossible to close.
Instead it's time for us in the mortgage business to do what many realtors are doing. they are becoming Loan officers to make both sides of the deal. Now we should start becoming Licensed real estate agents/brokers after all they go good together.
JMHO
Bill |
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MisterVA
8615 Posts |
Posted - 10/14/2007 : 5:53:05 PM
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quote:
Originally posted by eddiepazzo
It's time for me to expand my practice to include purchase business. I have (for the most part) avoided real estate folks. My early experience has not been great. I'd like to hear some of the success stories from those who read BO.
I already know that they suck and lie and cheat and are unreliable. I'd like to hear the upside.
How should I start?
What are the real pitfalls?
Is persistence the real key?
How do I tell them I don't sit opens or bring donuts?
How do I add real value to their business?
I need a small education.
Thanks from the Texan lost in Washington State.
If your true feelings about realtors are what I have highlighted, you will go nowhere. If you see them once and expect 5 deals right away, then you will be disappointed. You have to keep going back. No you don't need doughnuts. But visiting open houses allows you to meet agents and get to know them. Will you get deals that way? Eventually, especially if you show up with spread sheets for financing the open houses. Get to know the receptionists. Once you are friends with them, getting by their desks is easy. Plus, they may have friends & relatives interested in purchases. |
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ShirleyNault
249 Posts |
Posted - 10/14/2007 : 6:03:21 PM
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| Alot of people say the things about brokers. Realtors like brokers have the good the bad and the ugly. I guess we could say the same about AE's too |
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peter
6401 Posts |
Posted - 10/14/2007 : 8:41:26 PM
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Realtors are the necessary evil in our business. I sit
with realtors in a Century 21 office working with the good,
the bad, and the ugly. I used some realtors as in-house
notaries for my loan docs and quit claim forms so that they
will in turn reciprocate in giving me loans. I also refer
upsidedown homeowners to our realtors for listing and short
sale and I get business from them in return. So sad that they
can't seem to sell any listing that I gave them these days and
many of them are starving for an income right now. Those
that claim to have serious buyers to prequalify with me are
often delusional and those buyers are just flaky folks who
still want no zero down stated income/stated asset purchase
loans. So, I have decided to work with only one or two who
I think possess common sense and sales skills enough not
to waste their time and mine.
But if I have good refi business, I would put my in-house
realtors on the backburner as I don't want to be dragged down
into an endless exercise in futility. I am burning no bridges
though and if the right buyer comes along, I will get the
business from them. There hasn't been a worthwhile buyer for
quite a while since June and only my refi business that pays
the bills. You can't spend too much time with realtors as
you will be starving just like they are. But Washington State
may be different from California as I heard the market is a lot
better up there.
Peter
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Realtor Tools
26 Posts |
Posted - 10/15/2007 : 02:07:47 AM
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If you want to grab the realtor’s attention – bring something to the table they can actually use that no other LO has. They’re in business for the same reason you are – to make as much $$$ as possible – and with the housing markets the way they are in most of the country – appeal to their greed - if you can help them promote THEIR business, and THEIR agendas and put more money in THEIR pockets, you’re on the right track – find a few that want a competitive advantage over the ones you say “suck and lie and cheat and are unreliable”. Refis may be your bread and butter – but if you really want a few extra realtors as side items – check out this link and see what another LO in Florida did to “flip the script” on the realtor/LO relationship and make the realtor feel compelled to provide him loan business because it helped their business. The mortgage guys I know in Michigan are doing well with it too.
http://www.floridarealtors.org/FLRealtorMagazine/2007/July/0707TechYou.cfm
...or you could just bring donuts like the other 500 LOs that solicited their business before you did and were forgotten once the custard filled ones ran out. |
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averagejoelo
470 Posts |
Posted - 10/15/2007 : 09:58:15 AM
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Here is an audio module I released rececntly in response to this very question. This is just a primer, but there are several great ideas, and creativity stimulators within this audio. If I recall, it is about 20 - 25 minutes in length.
Chad Weber
Loan Officer Marketing Lab
www.loanofficermarketinglab.com
No Hype, no fluff...Just more closed loans
800-936-1180 X - 1 |
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averagejoelo
470 Posts |
Posted - 10/15/2007 : 10:26:45 AM
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| http://www.talkstream.com/podcast/768/11694.mp3 <<< Here it is... |
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Dennis_IL
583 Posts |
Posted - 10/15/2007 : 1:31:19 PM
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quote:
Originally posted by eddiepazzo
...
I already know that they suck and lie and cheat and are unreliable. I'd like to hear the upside.
...
I thought that was the upside. :)
Actually AverageJoe is the man to talk to. |
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Realtor Tools
26 Posts |
Posted - 10/15/2007 : 3:25:08 PM
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| After having looked at AverageJoes website – I’d have to agree that it provides a great deal of helpful information and techniques, and also appreciate the no BS hypothetical projections. If you combined the resources offered there and multiplied its impact using the latest video productivity tools used by the LO I mentioned in my response – It would likely be an incredibly effective campaign. |
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PHELoanOfficer
124 Posts |
Posted - 10/17/2007 : 1:18:27 PM
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| I need to take the dive into generating business with RE agents. I've been focusing on refis since I've started in the business...about 7 months now (I've closed about 7 deals so far, not much I know, but I'm not giving up hope). However, how does one with little experience, like myself, convince RE agents to send them business? I'm apprehensive about going to talk to RE agents face to face in case they ask something I don't know. I don't want to come across as unknowledgable and lose future business forever. I'm thinking of using the constant contact emailer to get a message out in front of as many RE agents as I can, obtaining their contact info in RE books. I guess what I'm asking for is any advice anyone can give me about drumming up business with little experience. Do I just go into a RE office, drop off a couple business cards, flyers, and some doughnuts at the receptionist like everyone else out there? Please help a noobie! |
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peter
6401 Posts |
Posted - 10/17/2007 : 3:12:29 PM
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Realtors are being bombarded with flyers and e-mails from retail loan officers
who work with direct lenders, i.e. Countrywide, Chase, Citi, etc., as well as
from brokers who want their business. One of our L/Os has tried the e-mail
approach and it didn't work out. Why would a realtor wants to deal with
a newbie L/O from a "broker" with the risks of jeopardizing his or her own
transaction while Countrywide and other direct lenders do have a standby
guarantee that they can fund their purchase loans within 30 days or less???
The only way to work is to visit the realtors face to face by brining along
a more experienced L/O with you and sometimes personal chemistry may help you
get the business from realtors who happen to like you as a person whom they can
trust and do business with.
Peter |
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isitfree
1285 Posts |
Posted - 10/20/2007 : 11:18:33 AM
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As has been stated in posts above, you need to add value to the realtor relationship. Bringing them more business would be highest 'value ad' on that list.
One of my LOs brought a realtor in to our office on Thursday and we sat down for a meeting of the minds for an hour and a half.
Believe it or not, the realtor left with a couple of our 'for sale' signs to add to his listings. We've already received calls on that listing from our call capture. We've also scheduled an appointment for the realtor to do a comparitive market analysis on one of our FSBOs in his area.
So, you need a game plan and you need to have something to offer to these realtors.
Anyone on this board could be a realtor. Simply put, they're salespeople and all salespeople don't share the same values and work ethic. Put together your gameplan on how you can help them and then find those realtors that think and work like you.
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GAcashflow
371 Posts |
Posted - 10/24/2007 : 09:45:41 AM
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quote:
Originally posted by PHELoanOfficer
I'm apprehensive about going to talk to RE agents face to face in case they ask something I don't know. I don't want to come across as unknowledgable and lose future business forever.
Control the conversation by preparing a short outline. The first meeting or phone call should be about learning their needs. How can you offer something when you don't even know what they need.
In any case, Pick 2-3 things that you will discuss and stay on topic. (ways they can increase their business). Make sure you do your research about those things so that you can answer the questions. If you cannot answer - just say something like "I want to make sure I give you the correct information, so let me double-check and get back with you this afternoon on that" Maybe you should invest 2-3 full days in "learning your stuff" before you go out on sales calls.
I have trainig materials on sales calls but I don't have the time right now to list it. Email me if u want it & I'll try & send it later on.
Also, as others have already stated - don't do what every one else is doing...set yourself apart. And be sure to do a bio sheet to introduce yourself.
Good luck |
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smoothlid
477 Posts |
Posted - 10/28/2007 : 8:15:10 PM
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At the risk of letting our "secret" out, here's what we do.
We prepare a list on Sunday am of 4-6 agents having open houses in a target area.
We then visit the website of the agent, and cut & paste some of their information into one of our Personalized homebuyer guidebooks, including their picture on the cover.
We print & take these, along with our intro brochure, sample listing flyers, & product highlights, some other goodies we have avail & hit the street.
We'll walk in, intro ourselves, show what we can offer, talk shop a few minutes, sign in take their flyer & offer to follow up with them, and then we actually do!
We find that we can meet one agent who will work with us a weekend, on average.
After a while, you have a decent group with whom to keep in touch with & the referrals start coming in.
Some move on, others feign interest, but some.....well that's the thing. You gotta be out there.
We offer really nice full color materials that we produce in house, and talk abou thow we can help the agents. We don't focus on rates, or fees. We tell them stuff we've done, & some of them are looking for that kind of support.
That's it.
Good luck! |
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peter
6401 Posts |
Posted - 10/28/2007 : 8:41:56 PM
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Realtors in our Century 21 office can get flyers printed
in colors anytime from various title companies whose reps
are regularly visiting them. They also get foods and snacks
from title reps whenever they hold open houses. But I think
what makes them stick to the L/O is the ability to perform
as promised and the ability to send constant referrals to them,
and they will turn over the loans to you. In most real estate
offices, there are in-house loan officers and the broker-owner
cuts a deal with realtor for a higher compensation if they
keep the purchase loans, as well as escrow services, in-house.
Still, some top producers pick their own L/Os to work with and
oftentimes this is based on a longstanding personal relationship
that they have maintained with the L/Os.
Also, lenders' reps like Countrywide's retail rep visits
realtors regularly and CW has a guaranteed closing period for
realtors. Being a direct lender with a closing guarantee,
CW retail reps get the business especially from offices that
they have signed up with the owner-broker.
But again, there are realtors who want to be compensated
for letting you do their customer's loan and since they don't
know you they cannot propose how much cut they would want to make
out of your commission. So, they'd rather go to the parking lot
and use their cell phone to call their buddy L/O and say discretely"
"Eddie, for this deal, it's one back for me. Thanks......"
And that could have been the call to his cousin L/O at another broker shop.
Peter |
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nickelnm
162 Posts |
Posted - 10/28/2007 : 8:51:29 PM
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Somewhere I have read to offer to realtors that their first client every month gets a free appraisal or something to that effect.
Any more ideas? |
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peter
6401 Posts |
Posted - 10/28/2007 : 9:07:40 PM
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The realtor does not pay for the appraisal. The buyer does.
The realtor could care less. What is most important for them
is performance of the L/O in closing their escrow on time,
and preferably with a cut for them? I hate to be crude but
this is the way many if not all care about.
Peter |
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johncm
481 Posts |
Posted - 10/29/2007 : 6:11:57 PM
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True a lot of realtors are a PITA. But, if done right, you will fall in love. I had the same attitude. This year I started going after them and it was a pian at first.
But Now my pipe is full and it is ALL realtor reffered. Average Joe Lo has a lot of good advice. Have not bought anything myself, but I'm sure the learning curve would have been shorter if I had.
Botoom line is, have business come to you is a ton of fun. |
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nickelnm
162 Posts |
Posted - 10/29/2007 : 6:57:00 PM
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quote:
Originally posted by johncm
True a lot of realtors are a PITA. But, if done right, you will fall in love. I had the same attitude. This year I started going after them and it was a pian at first.
But Now my pipe is full and it is ALL realtor reffered. Average Joe Lo has a lot of good advice. Have not bought anything myself, but I'm sure the learning curve would have been shorter if I had.
Botoom line is, have business come to you is a ton of fun.
So, how do you get business to come to you and get the realtors to send you business? |
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johncm
481 Posts |
Posted - 10/29/2007 : 7:41:52 PM
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You have to think like a farmer.
There is plenty of good info on the site. Chad is a wealth of knowledge. |
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brobob7
65 Posts |
Posted - 10/30/2007 : 07:26:36 AM
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I for one will not go out to kiss some realtor's azz, why would I spend my time working to get deals for a realtor just to have them send me loans that they already tried to get qualifed thru their in house lendersor JV's. I am having my wife get her RE License and will work my FSBO and home referals thru her. I consider this a better use of my time to produce money on both ends and still be able to concentrate on refi business.
JMHO
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johncm
481 Posts |
Posted - 10/30/2007 : 08:09:53 AM
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who said anything about kissing realtor azz. That is the wrong way. I have not provided them any deals.
Having your wife ger her RE license is a great idea. My wife is licensed and my realtor partners know it. Provide a great service and they will come. I will warn you, like children, they will test you and see how far thye can push you around. |
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markmerritt
7 Posts |
Posted - 10/30/2007 : 2:44:06 PM
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| John..how is it that you teach people to get more realtor business. I would be interested. |
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johncm
481 Posts |
Posted - 10/30/2007 : 5:34:29 PM
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| I do not have a formalized system. I am looking for locals who can team up with realtors I already work with. I'm in Sacramento. Unless you plan on moving I would check out averagejoelo.com Pretty much same ideas. He just does it better. I already have contacts to team you with here. Kind of a onsite mentorship. |
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nickelnm
162 Posts |
Posted - 10/30/2007 : 5:41:53 PM
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| I am not local, but I can originate in California; does that count? :) |
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pacificcastles
35 Posts |
Posted - 11/07/2007 : 09:36:58 AM
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Focusing on the purchase business is soooooo smart. Over 60% of the loans in America are for purchase and of the 40% left for refi's, many of those folks go with the person or company that did their purchase loan. Just know that we Realtors do love, need and trust our Mortgage allies. I am a Realtor and my partners and I have built a system just for Loan Officers and Mortgage Brokers to work with more Agents. We have changed quite a few Loan Officer / Mortgage Brokers businesses.
I don't want to sound Spamy so feel free to ask me questions or call me direct anytime! Also, anyone can please feel free to pick my brain about any Realtor/Real Estate related issues, I am the managing Broker for Colorado and California Castles Real Estate. I am a big what goes around comes around kind of person so if I can shed some light on any questions, just ask.
I posted this in the Advertisement forum but, here is an excerpt quote from Todd at Lenderama.com about us: quote:
If I were still originating loans, I would sign up for DoMoreLoans.com today. If you are looking for a rock solid, tangible product that WILL make real estate agents want to work with you, this is it.
http://blog.mariah.com/2007/10/do-more-loans/
You can find out more at www.DoMoreLoans.com or just call me and I will personally walk you through the system or just talk about the Real Estate biz. |
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jtm7332
616 Posts |
Posted - 11/07/2007 : 11:10:36 AM
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| There is such a bad view on realtor's from many people but the way that I think of it...they can provide you business. I actually went into a realtor's office the other day and she was more than willing to talk to me and we touch base at least 3 times a week on how we can benefit each other. She said that she worked with a broker before that was unreliable and she was looking to try something new. Looks like I am the one for that. It never hurts to try to spur new relationships, a person can judge by the first or second time they actually conduct business with them if the would like to continue the relationship. |
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johncm
481 Posts |
Posted - 11/07/2007 : 11:27:10 AM
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This is a great tool. This is a great positioning tool as well. The biggest complaint I hear is realtors are dificult to work with. This is true, to some extent. But you want to postion yourself as a pro and not there puppet. You control or you don't work with them. There are to many realtors to have to deal with thierissues. Tools like this are a great carrot> I just recently signed up for this and I am getting ready to roll it out. With my other tools, I will be the go to LO. I will be the only one helping them get business. And as soon as they try to tell me how to work my deals, see ya'.
Realtor are great, but you HAVE to go through a few not so great ones to get there.
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johncm
481 Posts |
Posted - 11/07/2007 : 11:37:50 AM
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No, I'm sorry. This is really a hand holding, mentorship deal. I am not set up to do long distance and don't have the time. I will tell you this, There are great tools available to help. Yes they cost money, but so do I. One way or another you have to pay for education.
Average Joe LO is a huge resource. He give a lot of his time at no cost. But From What I have seen and heard, buying into his material is going to be a huge benefit. SHortend the learning curve.
Also, check out DoMoreLoans.com. I just signed up for this and all I can say is wow. I am tying this in with call capture,OMG. This is a perfect reason to go and see realtors. Try this: find 10 to 20 producers in your area. Not huge producers, but realtors theat are acvtive and call them up> Hi "name" we have done business in the past, or your were reffered or I hear you are a go getter or...
Listen, I have a great product that I plan on giving my realtor partner which will do...
and before I put it out, I am looking for a couple of beta testers to try it out, free of charge. It does...
Don't go into detail. Set an appointment and go over it in person.
Hope that helps
quote:
Originally posted by nickelnm
I am not local, but I can originate in California; does that count? :)
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Charles CA
290 Posts |
Posted - 11/07/2007 : 11:53:15 AM
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| I love these topics, they tend to put the realtionships in true perspective. |
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PHELoanOfficer
124 Posts |
Posted - 11/07/2007 : 1:46:01 PM
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| I'm absorbing all the info from this topic. I appreciate everyone's input. I've signed up for Active Rain, checked out craigslist, and signed up for a la mode's free mortgage xsite. Does anyone have the office level xsite from a la mode? There also is the xsellerate add-on. Are these two worth the $600 price tag? I'm looking at all avenues to slowly break my way into the purchase side of things, since I don't want to jump head first with my limited experience. Keep up the good posts! |
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pacificcastles
35 Posts |
Posted - 11/07/2007 : 2:35:35 PM
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| I always say, don't get caught up in playing office. The three C's to success are SEE THE PEOPLE, SEE THE PEOPLE,SEE THE PEOPLE! |
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johncm
481 Posts |
Posted - 11/07/2007 : 3:37:43 PM
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you forgot the most important C.
When you are done seeing people, see more people! |
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enailor
121 Posts |
Posted - 11/13/2007 : 12:47:36 PM
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After reading a dozen or more responses, I had to jump to the bottom. No wonder RE Agents don't like mortgage brokers! What the hell?
Its a damn shame that those who should work togther to help someone acheive a life long dream are too busy slamming each other! This is for both sides. I am a mortgage broker and work very well with the RE agents I choose to work with. But I don't get into how much they make and what they do. I let them do their job and I do mine... and I DO mine!
Like anyone is sales, we ALL seek to surround ourselves with those that will help us achieve our dreams and goals. Go out of your way for a RE Agent and try to make them successful... it will come back to you beyond what you can imagine. |
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pacificcastles
35 Posts |
Posted - 11/13/2007 : 1:23:37 PM
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quote:
Like anyone is sales, we ALL seek to surround ourselves with those that will help us achieve our dreams and goals. Go out of your way for a RE Agent and try to make them successful... it will come back to you beyond what you can imagine.
I agree Ed! What goes around comes around! As I like to say, money is a metaphor for how many people we help. The more we help the more we make!
Realtors in General have a very positive image of Mortgage Brokers and Loan Officers. I am afraid too many LO's and Mortgage Professionals do not realize how needed and trusted they can become to Agents in their town. |
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velecico
5253 Posts |
Posted - 11/13/2007 : 6:07:35 PM
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hire a PI and get some dirt on the broker or sales manager , everyone has skeletons , then set up a meeting with the information you aquired , depending on what you have , cheating on wife = 20 monthly referrals , cruising for prostitutes = 10 monthly referrals
drug use = 5 monthly referrlas ( except in CA or FL ) drug use is tolerated due to your sinking market |
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