Realtors

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goodguy1

1681 Posts

Posted - 04/06/2008 : 10:51:52 AM

Ok so I am "giving in".

I've recently lost a couple deals to people who "decided" to go with their realtor's suggestion for a mortgage broker.

I kinda' despise realtors as they like to talk a lot and want their rear-ends kissed. The ones I have worked with in the past are basically non-producers.

So after all of this being said, how can I turn my attitudes around and get in the game of "being friends" and trying to work together with the sucessful ones to get some business??

I can offer them them this: I will make myself available to them & return calls, professionalism, dedication, promise to do what it takes to get the deals done, etc..
What do they really want?
What works?
Where do I start?
How can I get my foot in the door with agents that actually do business??

Any serious input is appreciated.

Thanks!

steve@betterloan

140 Posts

Posted - 04/06/2008 : 10:54:30 AM

some realtors are under paid dirt bags, and all they want is a cut of your action.

goodguy1

1681 Posts

Posted - 04/06/2008 : 10:56:11 AM

yeah it's true; the others just keep telling you how good they are.

how do you get in with the producers, and what do they really want??

Coffee Is 4 Clos

1649 Posts

Posted - 04/06/2008 : 10:57:49 AM

quote:
Originally posted by goodguy1

Ok so I am "giving in".

I've recently lost a couple deals to people who "decided" to go with their realtor's suggestion for a mortgage broker.

I kinda' despise realtors as they like to talk a lot and want their rear-ends kissed. The ones I have worked with in the past are basically non-producers.

So after all of this being said, how can I turn my attitudes around and get in the game of "being friends" and trying to work together with the sucessful ones to get some business??

I can offer them them this: I will make myself available to them & return calls, professionalism, dedication, promise to do what it takes to get the deals done, etc..
What do they really want?
What works?
Where do I start?
How can I get my foot in the door with agents that actually do business??

Any serious input is appreciated.

Thanks!

You can't do anything you aren't doing already. Agents are not producing right now and that's it. The Agent superstars are signed up with Gaurenteed Rate for a rip off the mortgages or they hold deep rooted realtionships with LO's. The bigger outfits are now holding subsidary Mortgage Businesses to promote one-stop agencies. The mom and pop realtors are the ones who are dying a quick death and will either consolidate with a larger shop or close their doors. I don't mean to be negative on this but its the truth- focusing on niche's is the only way right now to survive. FHA is back with demand and knowing the product inside and out should produce 5 deals per month for a good LO. Also, signing up with good lenders for sub prime and jumbo is all you need right now since if you are talking to a customer with one of these two needs then you should get the deal... banks are sucking in rates right now and/or only hold one or two competitive programs. Take a look around at jumbo niches or even ARM's and you will find rates all over the place.

RANDY P

2966 Posts

Posted - 04/06/2008 : 11:23:19 AM

some?

Try like 98% of them.

The problem is they believe that there is no such thing as courtesy. If a RE agent acted and dealt with the general public off the clock as they do on the clock they'd be locked up or at the very least shunned by their neighbors.

The way they are taught to deal with others during the transaction is unprofessional. The way to deal with it is to control the borrower, and scare the agent with longer turn times if they try to manipulate it once you start. If you make it within a week of closing you own them. Don't forget to get all the originals from the borrower so it's impossible to shop. Never let the agent make a bad suggestion, be nice about it, at least in front of the borrower.

Nowadays there are few agents out there that really are a good source of referrals - the ones that are don't match the description I've given above. People know BS when they smell it and the ones that play that way are starving now.

The only thing the average RE agent cares about (despite what they tell you) is a fast close and a quiet borrower. If you get a referral and close it quickly and keep the borrower quiet the agent doesn't care what you charge. Average RE agent would sell their own mother to close a deal. They only care about closing it quickly, nevermind all that BS about "making sure the client doesn't get ripped off"

The few times I've been threatened about fees I just tell 'em then it's redraw time and we need another week. Shuts 'em up instantly.

rjp

quote:
Originally posted by steve@betterloans.net

some realtors are under paid dirt bags, and all they want is a cut of your action.

lunarhamster

4436 Posts

Posted - 04/06/2008 : 11:28:18 AM

I like it!!

RANDY P

2966 Posts

Posted - 04/06/2008 : 11:33:35 AM

I make no qualms about telling an agent when they start their routine

(you know, call on doc status, then have their assistant call, escrow agent call, seller call one right after another)

that I will drag this out if they bother me. I tell them I will tell YOU when it's ready and not to call my office. Same for the escrow agent who is doing it to kiss the agent's butt.

Just don't miss your quoted time, and never let them bump up the closing date on you. Thankfully I sell well enough where I can't be bullied by the RE agent. I control the show once it's in my hands.

rjp

EMScommercial

5141 Posts

Posted - 04/06/2008 : 11:48:22 AM

it is funny how you can't get a realtor to answer your calls unless she needs something.....

realtors are a neccessary evil in this industry, but it doesn't mean that they are still not evil! (for the most part)....

rtrefflich

3861 Posts

Posted - 04/06/2008 : 12:30:42 PM

The best part is they don't take your calls, but if their call even goes to voice mail and you don't respond witin 10 minutes they are hounding you.

quote:
Originally posted by EMScommercial

it is funny how you can't get a realtor to answer your calls unless she needs something.....

realtors are a neccessary evil in this industry, but it doesn't mean that they are still not evil! (for the most part)....

superthor1022

2797 Posts

Posted - 04/06/2008 : 12:54:56 PM

NOTE: I am not defending slimmy realtors. however, I work with a few that are very solid. They are advocates of my services and have referred other agents to me and the main group I work with give me an average of 8-10 leads per week.

I have taken the approach of soliciting them by asking them for their numbers. Let them know that you are only interested in referring business to very successful Realtors that have business to refer to you. Set up as many meetings as ypu can and basically interview them.

Just like most things in this business, it boils down to relationships. They have to be solid. I then try to refer them a few clients. dial into your database and call them and make a referral to them. You will be surprised at how man of them have a Realtor that they trust. Have them make an introduction if they will.

Just some ideas...
-thor

goodguy1

1681 Posts

Posted - 04/06/2008 : 2:45:10 PM

8-10 a week is pretty nice... what are you "giving" them ; )

I recently had lunch with a realtor buddy, and he's even getting flakier!!!
necessary evil is right.

isitfree

811 Posts

Posted - 04/06/2008 : 5:10:37 PM

You need to work with a large number of realtors in this market. Most are unproductive and/or on their way out of the business. The same is true of LO's in this market. So, it's no different.

The favorable news about this present market is that realtors are open to building relationships if you have a system that works.

I work with over 100 realtors personally and one of my criteria is that the realtor can not be within a one hours driving distance of my office. If they are, then I try to pass them on to one of the LO's in my office. In this way, I don't waste a lot of time with any one realtor and building the relationships are easy.

kbaker

910 Posts

Posted - 04/06/2008 : 5:42:02 PM

They want you to help them make money. Help them work their leads and reciprocate based on their performance. Sell them on your CRM program. Realtors are having a big problem with buyers moving from one Realtor to another. If you can help them keep more of their leads then they should soon realize how valuable you are and will eventually start sending you all of their leads.

Mandyvilla

3624 Posts

Posted - 04/06/2008 : 6:02:05 PM

Wow. Talk to 10 different loan officers and get 10 different takes on the real estate agent relationship.

Usually, I am the real estate agent's preferred source for a mortgage loan. Even then, it's not a sure sale. (It's easier, but not a done deal). In this situation, the buyer is convinced that there is a kickback involved. I now work that little tidbit into my spiel, but not from the angle why they recommended me, but why the real estate agent wants the buyer to go w/ one of his or her recommendations. I set the difference between me and an internet lender and why the agent is pushing me. Once I am able to convey the realtor carries a very big stick with me, as opposed to no-name-online-bottom-feeder, who doesn't give a rat's you know what about what the realtor thinks.....the kickback thoughts are put to rest.

I enjoy working with realtors....if they are strong, all the better. I can't think of one such contact where I have not learned something - even the ones you have to take in small doses. My entire career has been courting the real estate agent relationship, resulting in the majority of my personal friendships. And, in many cases, I have fired my realtor friends as a business relationship and replace them with other realtors I target to do business with. Many of the friends don't really care - for what ever reason, they are backing off real estate or have headed in a direction that is not compatible with mortgage lending (property management, commmercial, recruiting and so on). One has a builder I can't stomach - he brings laughter into our lives.

I am trying to avoid writing another book here (too late), but there are two points when trying to work with a realtor and "work" the transaction for future business. First, when talking with the borrower, in each telephone call, try to say something positive about the realtor (without being too over the top). Offhand (seemingly) comments about the Good Faith and negotiation process, "listen to what xxxx recommends - it's well known w/in our industry she/he is one of the best negotiators." The key here is offhand and not the subject of the telephone call. It will get back to the agent. Feed the ego.

The second item, create something of value to your real estate partners. We all have different ways, whether it be financial support of broker's opens or realtor seminars that you participate, to individual training or keeping the real estate agent current on various changes - of which there are plenty. I send out mailings and depending on the zip code, I may add a clear sticker promoting a specific realtor for them to call for more info or simply "ask me to recommend a realtor that REALLY knows your neighborhood." Realtors have gotten a hold of my mail pieces and have asked how they can get in on my mailings. And so it goes.

My business is successful because of the real estate agent. Can I survive w/out them, probably. But they do make my getting the business easier. Talk to a different loan officer and they don't want to talk to the realtor, much less see them. It's finding your comfort zone.

smoothlid

429 Posts

Posted - 04/06/2008 : 8:37:57 PM

the problem in working with RE agents is finding some that actually do any business, & understand what they are doing, & those that understand the concept of being a true "partner". I make mine understand that I refuse to be one of 3 names she hands out cards for, & we always go out on a limb first for them, showing them what we will do to help support their business. If they con't follow through, I call them on it, & then yank the benefits away & fire them....there are many to find, open houses are a great way to meet them.

Scrooge McDuck

9727 Posts

Posted - 04/06/2008 : 8:40:15 PM

i just completed a deal with my brother as the realtor and it was great. best realtor experience i ever had.

goodguy1

1681 Posts

Posted - 04/06/2008 : 8:40:43 PM

ok now success stories..

there are some good ideas, but a lot of us are drumming to the same beat..

please chime in!

SimpleMan

545 Posts

Posted - 04/06/2008 : 9:09:32 PM

I used to have a bad attitude about relitters.....I changed it out of neccesity.

My referral refi biz is (almost) dead due to a 40 percent decline in value in my market.

Telemarketing pull through's are ridiculously low, even if you get someone who wants to go....they can't be done. I think I spend more on credit pulling than I make..(obvious exageration, but you get the point)

Purchaces are the way to go.....relitters are the way to get them.

Good experience? Yep...I picked up 3 that have fed me about 15 pre quals in the last 30 days... most are do able. 11 aproved, In contract on 2.

The bad... While trying to chase some down, I was treated (by a few) very badly. I called one and told him I have an investor client pre qualed and ready to go, I wanted to start a relationship with him and we could start by me referring to him. He said he was tied up and to e-mail him. I did, he e-mailed back he would "consider it, but would need the details"....He said he would call me later and never called... I couldn't believe it. I figured if I can't get his attention with a buyer ready to rock....I am wasting my time. I referred the client to another guy. The other guy said he would love to start a relationship and would be happy to refer clients to me. 8 weeks later....nothing.

I am choosing to focus on the 3 that are referring me biz and a pleasure to work with......

smoothlid

429 Posts

Posted - 04/06/2008 : 9:24:48 PM

SUCCESS STORIES:

I have one success story I will share, it is still a work in progress, but starting to yield fruit.

We offer new agents a very nice listing package.
It includes personalized color printed & bound presentation booklets, flyers, Home buyer guides, seller hints booklets, sign in sheets & more. Only a few LO's offer this, & none as nice as what we do. I have an assistant that creates these for us, & it takes @ 30 minutes to setup a new listing & print out everything.
We approach them at open houses & in other ways & present them with a sample, personalized with their info on it...this is what I will refer to as "REALTOR CRACK" ( because when they get hooked on having this stuff, they can't quit it.) We charge them our cost for the proportionate share of space utilized on the home & them, just to keep it RESPA compliant. ( it's about $15 a listing)We offer to be present at open houses, & offer to do broker opens on occaision. We will hold training at their offices (helps to meet more agents) & we help them follow up on leads (mail & phone) Every Monday, the faxes come in with the guest sign in sheets from the Sunday open houses & the info all gets entered into my database.

The materials help them look great to prospective shoppers( potential buyers & sellers<listings>) & they know it.
One agent I work with generates @ 6-10 shoppers per open hse & she almost always meets a new buyer to work with or a listing or both.
A good agent will get you @ 6-10 loans a year.

Yup that's it.
You need more than a couple agents, because they are not all "good" some you will be lucky to work on 5-6 listings all year & get 2 referrals, & one loan. If you work with @ 6-10 agents, you should be able to generate @24 loans a year, from this. You can sprinkle in some previous clients, & other referrals, plus some leads to hit 4-5 loans a month...& if you can pretty much self source & close 4-5 deals a month, you are a great LO....I'll hire you & give you 65%, & help support your marketing costs!

Be prepared to do what they need, within reason.

you must be available at all times & return calls promptly.
You must keep them informed.
You cannot lie to their customers, or blow their deal up in any way or you are done.
We offer real AUS preapprovals, not pre-quals, & explain why.
We tell them not to be involved in our end(rate/fees)& we will deliver with no surprises.
We go to closing.

I have one agent who is involved with @ 60-100 transactions a year.
Most are listings, however, & she does not sell them all herself, of course. I piggyback & split cost on her 2000 piece quarterly mailer to her farms, & I allow her use of my call capture program #'s in her advertising. We also do some direct mail together, & I bought ad space on the folders her office uses for client materials.
I have no other agents as succesful as she is, & I don't get as much from her as I would like, (she only refers me, but it is hard to get them all)but I more than cover my investment, AND when I approach new agents, & drop the name, it does not hurt.

You have to get out & prospect for & retain these partners & treat them like business partners.
Do it right, & you will be well positioned for the coming years.
It does not happen overnight either. Expect to earn your way in over a 6 month to 2 yr+ period of time. Once you close a few together, you should be solid, just don't get greedy or lazy.

Best of luck, & keep it legal!

3100 Posts

Posted - 04/06/2008 : 10:00:13 PM

Stake out some of the nicer HUD Homes in the area. Look in the Star-Trib, find out who is advertising HUD Homes, these are non-exclusive listings. Get familiar with the process of financing HUD homes...100% financing with $35,000 FHA 203(k) Streamline Rehab loan.

Go to a HUD home Sat or Sun afternoon. Realtors love HUD homes, (no split fee with other Realtor, house is empty, show anytime) and the rehab money is key!

Ambush the buyer, they are not wedded to that Realtor. If the Realtor is smart, you tag-team the buyer, if they ain't too bright, they lose the buyer.

Most Realtors (and for that matter LO's) don't know sh*t from shineola about FHA 203(k) rehab loans. Once they hear you can get $35k on top of the PP, their ears will perk up.

Best part of all, HUD Home buyers don't carp. They're just happy someone is paying attention to them. You can't get a 203(k) at most banks, buyers know very little about them, they won't shop you, they pay VERY WELL! AND...with the high interest rate of a 203(k), you can streamline refi those same buyers, same time NEXT YEAR!!! Two loans for the price of one! Cha-Ching! Good Luck!

goodguy1

1681 Posts

Posted - 04/06/2008 : 10:07:46 PM

good ideas..keep em coming

goodguy1

1681 Posts

Posted - 04/07/2008 : 04:53:14 AM

so when you are going to approach a relitter, what type of marketing package do you approach with?

smoothlid-
can you share your info? Is there a solid service I can subscribe to that produces this type of thing?

superthor1022

2797 Posts

Posted - 04/07/2008 : 07:08:08 AM

quote:
Originally posted by goodguy1

8-10 a week is pretty nice... what are you "giving" them ; )

I recently had lunch with a realtor buddy, and he's even getting flakier!!!
necessary evil is right.

1st- I meant per month!! not week. sorry
2nd- I am not giving them anything. they are fed up with giving out leads and NOT having people be able to close them. also, the main group I work with is SOOOOO sick of L.O.'s sending them "marketing Packages". they want people to just get to know them. PERSONALLY. That is what I have done over the past four years. When they hired a new agent that had his own L.O. that he sent tuff to, I won him over by following up on leads. It was that simple. L.O.'s are lazy. (Me included) we do a horrible job of following up on leads. I call them until they I get a hold of them and and I get a loan app or until they tell me to stop calling them. NOt brain surgery. just follow up.
-thor

goodguy1

1681 Posts

Posted - 04/07/2008 : 07:10:06 AM

you know I was giving you crap, right?

superthor1022

2797 Posts

Posted - 04/07/2008 : 08:05:06 AM

yes, but others probably did not. 8-10 week would be awesome though!!
-thor

dsullivan

82 Posts

Posted - 04/07/2008 : 11:06:46 AM

Don't be frustrated by Realtors. They can be all the negative things that have been said here about them, but they can also be a huge source of income. I don't believe you need to give away the farm, or do anything other than stroke their egos and be friends.

I have an article I would be happy to email to anybody on how to get at even the top Realtors, get into closed offices, and why you want to only work with Realtors who are friends. Email me and I'll shoot you a copy.

Dan

dsullivan@velma.com

isitfree

811 Posts

Posted - 04/07/2008 : 3:01:45 PM

In between prequals and other LO work, I talked to seven new realtors today.

One said she had 'mortgage brokers coming out of her ears". I thanked her for her time and removed her from my list.

Five others I had great conversations with. One of the five closed 16M last year. Great contacts. Added all of them in my weekly email campaign and follow up.

One asked us to mail some www.SellerHelpsBuyer.com call capture signs for his listings.

It's a grind but somebody's got to do it. Gotta work them realtors!

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