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assassin17
4172 Posts |
 Posted - 08/05/2008 : 7:03:26 PM
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Taken from an archived thread awhile back, this concerns someone new asking how a successful LO could schedule their day.
I am going to copy some relevant portions here.
Greg
http://www.brewcitymortgage.com |
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assassin17
4172 Posts |
Posted - 08/05/2008 : 7:07:15 PM
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Scheduling Your Day
Posted by: Assassin17 12/01/06
Your schedule will alter as you move forward in the business, but I got some good starter tips from a friend. (These are for LOs that must generate their own leads.)
- Process your first 2 or 3 loans if you can, for knowledge of the processing procedures.
- Resist the temptation and do not process your own files from that point on. The few extra bucks you get for processing will never be more than what you will make off a new lead gathered with the extra time saved. You are a salesman, not a processor.
- Once you have the leads, allow one hour per day for every current loan in your pipeline. The implied goal is to work on 8 loans at any given time, allow for 50% fallout and still obtain one check per week from a closed loan.
- At any time you have less than 8 loans in your pipeline, use each extra hour for prospecting and/or marketing. Never sit on your butt with this extra time or go home early. Naturally, that means that as you start, most of your time is spent marketing yourself and it decreases as you get loans to work on.
- Any extra hours you can work should be spent on marketing/prospecting, or on any loans above 8 that you may currently have. (Make sure that you are eligible for overtime work if you are W2 and do not work extra hours and expect pay if not authorized to do so by your employer.)
- Schedule your time so that your prospecting calls are later in the day. Most people work 1st shift, so you will not reach them early in the am, nor will people appreciate calls that early. Use your early hours to work on loans.*
* This tip is the one that throws a wrench into new LO success. You've studied hard and learned, but you have yet to apply it. When you start you have few to zero loans, so your day is best spent working from maybe noon until 9pm. However, most people show up for work from about 9 to 6. This does not work effectively for a beginning LO because the great majority of time is spent on marketing/prospecting. Without loans, AM hours should only be spent shaking hands or obtaining names to market later. You should gradually move your hours to normal as you obtain clients.
- Do not just sit in the office forever. This is the number one mistake new LOs make. Marketing yourself consists of more than direct mail and phone calls. You need to get out and introduce yourself to realtors, FSBOs, constructors, carpenters, attorneys, financial planners, etc.
What you are attempting is to get yourself memorized by everyone. That memory will trigger you as someone who is a mortgage broker. People will always memorize a face faster than a voice on the phone. This is exactly why AEs pop in all the time.
To test this, write down from memory how many AEs you have. Read your list and count how many have met you in person vs. how many you have only spoken to over the phone.
- Never underestimate the FSBO. These people are usually selling their home without a realtor to save money for closing on a new home. This is a great prospect, because you have an excuse (Helping pre-qual buyers) to knock on their door and provide face-to-face contact to someone who may only be working with an LO over the phone (See above). You also have an opportunity to scan another GFE and beat it, making you the 'good guy'. You can also obtain a lead from every one of their prospective buyers if they will work with you.
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It may not be a perfect system, but those tips allow me to give a new LO a starting point instead of them wandering aimlessly during the day. It teaches them to regulate their time in the beginning and stop staring out the window in the morning. |
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assassin17
4172 Posts |
Posted - 08/05/2008 : 7:09:20 PM
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Practice Your Speaking Skills
Posted by: Assassin17 12/03/06
From what I've seen, it takes exactly 3 months for an LO to "talk" properly to clients and stop hesitating. Their prospecting speed improves immensely at that point. In the beginning, they are so bad they stop making calls after 3 days of failure, not realizing that they fail because they have zero confidence when they are speaking to someone.
The first 3 months is practice, practice, practice. Sell to your razor, sell to your mirror, sell a loan program to a traffic light on the way to work. If your wife cooks dinner, you try to sell her the mashed potatoes. Just understand that the prospecting stinks, but if you don't do it you will never be good at it. Don't memorize a script, you have to let it all come naturally because you know it.
Make some flash cards with every objection you can think of. Have someone sit across from you and mix them up each time. Then pretend to call and prospect them. When they pop up a random objection, you need to be answering it calmly, easily, and correctly within 1 second. When you can do that, you are ready.
Also, don't expect results right away. Just because you tell all of these people what you do, it doesn't mean that they know someone who needs a loan right at that moment. Everyone knows maybe 2 or 3 people who buy a house within a year. Keep yourself in their memory and when their friends finally mention it to them, they will instantly recommend YOU.
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assassin17
4172 Posts |
Posted - 08/05/2008 : 7:11:25 PM
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Make It a Career
Posted by: Assassin17 12/05/06
I was asked to post this. Dug it up from my old notes.
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Most LOs will starve for 3 months and quit the business without making a penny. Real LOs, not the order-takers. You basically have 2 choices...
Order-Taker - Make 1/3 to 1/2 the commissions, by learning nothing more than taking a 1003 and passing it along. Managers take some of your split or everything has a "fee" that cuts your commission. The work is easy, but you'll never get rich. You will have company leads and a steadier income, but you may as well be an unlicensed bank LO getting 10 bucks an hour. You make less because you are basically a telemarketer or what is known as a "loan solicitor".
Mortgage Consultant - The real LO. You make more because you learn the entire process from start-to-finish. It is MUCH harder, but this is the only way you will ever gain the knowledge to strike out on your own as a broker or demand the big money. You are responsible for your own leads, but you develop the bond with the client for future referrals, instead of your boss or manager. When you leave, THEY leave with you.
You will learn to:
- Market all types of leads.
- Take the app and fully-consult with the client. Explain RESPA docs, rates, deductions, and everything else.
- Select the proper programs, dealing directly with AEs and all involved.
- Order titles, appraisals, and payoffs if you have to.
- Know the processing procedures for all documentation, assisting to make it faster.
While the order-taker offers the loan, the consultant offers themself. Choosing which to be is a matter of how hard you are willing to work. The reason most new LOs quit is because they don't manage their time correctly and they don't understand that results work on a 90-day cycle. Even if they have worked really hard, they quit just before it comes to fruition and the calls simply go to some other lucky person in the office.
Everything you do will be a 3-month process:
- Month 1: Your prospects are marketed. You put your name out everywhere. Don't expect a commission unless you have a bond with God.
- Month 2: Few leads are returned from month 1. There will always be fallout, i.e. dead leads. The important part of this month is to be doing follow-up on Month 1 contacts and begin whatever comes of it. You might even cash a check.
- Month 3: The loans from month 2 are worked on and you get paid. Some leads from months 1 and 2 should also trickle in. You should cash a check.
So it is a 90-day cycle, from the time you call, mail or pass something out until you actually get paid on the result of the efforts. The longer the cycle continues unbroken, the more results you begin to see, because there will always be a slight trickle from the previous 90-day cycle. Eventually, you should cash 3 checks a month.
Effectively, this makes your previous 6 months of effort begin to combine and *slowly* multiply itself, like a growing spiderweb. This is why you should always maintain a client list where you begin to call-back and check on clients from over 6 months ago... You begin to add them back into your newest cycle. If you have good results, you could be cashing 6 checks, charging less to your clients (Because now you can afford to eat), and building a solid reputation.
The goal is to get to the point of doing all 3 at once. This is usually not going to happen until month 3, by understanding this procedure:
- Month 1: You are only doing marketing. (Unless you are very lucky)
- Month 2: You are now doing marketing, plus follow-up from the previous month.
- Month 3: You are doing marketing, follow-up and working the loans.
After 3 months, you can maintain a constant flow of all 3 at once. This would not be the time to quit! The reason most LOs quit is because they have skipped a portion somewhere and broken the chain. Once you break it, you set yourself back 3 more months, by which time you will probably now starve. |
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assassin17
4172 Posts |
Posted - 08/05/2008 : 7:12:47 PM
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Daily Activity System
Posted by: Assassin17 12/14/06
Here is the point system. I had to call around and ask, because my desk is a mountain of junk. The guy calls it a "Daily Scoreboard of Income-Producing Activities".
Daily Activity (Pts)
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Send 5 "Thank You" cards (2 pts)
Call 5 past clients (2 pts)
Call new referral source (2 pts)
Appointment with new referral source (2 pts)
New client contact made (1 pt)
New pre-app with credit pull (1 pt)
Set appointment with new client (2 pts)
Signed application with client (5 pts)
Closed a loan (10 pts)
Call FSBO listing (1 pt)
Visit FSBO listing (3 pts)
Financing flyers for FSBO (1 pt)
Place FSBO yard sign (2 pts)
Contact new real estate agent (2 pts)
Marketing meeting with realtor (2 pts)
Attend realtor open house (2 pts)
The daily goal is 10 points and he personally doesn't go home unless he has made his points for the day. His old boss used to actually enforce this system.
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assassin17
4172 Posts |
Posted - 08/05/2008 : 7:13:56 PM
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Sample Response Rates
Posted by: Assassin17 12/14/06
More relevant notes. Not sure where these were "borrowed" from...
Average response rates for Anonymous;
Cold-calling from phone book - 1%
Direct-telemarketing a targeted list - 2%
Direct mail-marketing same targeted list - 2%
Mail-Market plus phone follow-up on same list - 5%
Telemarketing from register of deeds - 5%
Direct-Mail marketing from register of deeds - 3%
Mail plus phone follow-up on register of deeds - 8%
Incoming real estate agent referrals - 100%
Unclear whether this means response of leads or closed loans, although it appears to mean only leads by the Real Estate remark. Also unclear how long he tracked it. He must have some very good realtors, which is not the case for many new LOs. The implications for time management would be obvious, if we could ignore that he left out a lot of other ways to generate your own leads. |
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assassin17
4172 Posts |
Posted - 08/05/2008 : 7:16:59 PM
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Ways to generate leads inexpensively (for beginning LOs)
Posted by: Assassin17 12/14/06
*Materials = Business cards, letters, flyers, etc.
- Hand out materials* to family and friends. The goal is for them to pass them around for you, not just to do a loan with you. A loan is a bonus, not to be relied upon as reoccurring client.
- Visit realtor offices and hand out materials. Never fail to contact any reference to a specific realtor. Focus on "listing" agents, as they can provide many more leads than buyer agents.
- Place ads in affordable weekly church bulletins, store magazines, etc. Leave TV and Radio to the big boys for now. Take advantage of free listings whenever you can. Use call-capture system to track response rates by using different extension numbers.
- If local newspaper gives notices of upcoming events, hold a monthly homebuyer seminar and email your "press release" for free publication.
- Stop at every FSBO you see and hand out materials, focusing on an FSBO seminar offering free Q&A session with a realtor friend. Always offer to place a sign or assist in pre-qualifying buyers.
- Attend any local chamber of commerce or RE investor meetings you can find. Network them heavily.
- Handshaking and materials to every builder, contractor, hardware store, carpenter, carpeter, painter, landscaper, divorce attorney, bankruptcy attorney, foreclosure attorney, real estate attorney, wedding store, financial planner, accountant and any other business which could possibly involve a home that you can find.
- Do whatever you can to obtain access to local court records. Target mortgages, bankruptcies, delinquent taxes, foreclosures, etc.
- Make a web site. Not a web PAGE, a complete site. Do NOT misspell anything.
- Steal any competitor signs you see in yards. (Ok, don't. I added that one myself :P)
I'm sure people can add more if they wished.
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assassin17
4172 Posts |
Posted - 08/05/2008 : 7:18:24 PM
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| There you go. Some tips for beginning LOs. |
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ritabradley01
3228 Posts |
Posted - 08/05/2008 : 7:51:32 PM
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| Beautiful-really nice. Thank you so much assassin. |
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isabella2113
295 Posts |
Posted - 08/06/2008 : 04:35:01 AM
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| I have been an LO for 15 years...it never hurts to reaffirm some of the steps we used to get started in this business. We have all experienced slumps and this thread just brings you back to the basics. Thank you for your input. |
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MisterVA
6634 Posts |
Posted - 08/06/2008 : 1:23:09 PM
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quote:
Originally posted by assassin17
Ways to generate leads inexpensively (for beginning LOs)
Posted by: Assassin17 12/14/06
*Materials = Business cards, letters, flyers, etc.
- Hand out materials* to family and friends. The goal is for them to pass them around for you, not just to do a loan with you. A loan is a bonus, not to be relied upon as reoccurring client.
- Visit realtor offices and hand out materials. Never fail to contact any reference to a specific realtor. Focus on "listing" agents, as they can provide many more leads than buyer agents.
- Place ads in affordable weekly church bulletins, store magazines, etc. Leave TV and Radio to the big boys for now. Take advantage of free listings whenever you can. Use call-capture system to track response rates by using different extension numbers.
- If local newspaper gives notices of upcoming events, hold a monthly homebuyer seminar and email your "press release" for free publication.
- Stop at every FSBO you see and hand out materials, focusing on an FSBO seminar offering free Q&A session with a realtor friend. Always offer to place a sign or assist in pre-qualifying buyers.
- Attend any local chamber of commerce or RE investor meetings you can find. Network them heavily.
- Handshaking and materials to every builder, contractor, hardware store, carpenter, carpeter, painter, landscaper, divorce attorney, bankruptcy attorney, foreclosure attorney, real estate attorney, wedding store, financial planner, accountant and any other business which could possibly involve a home that you can find.
- Do whatever you can to obtain access to local court records. Target mortgages, bankruptcies, delinquent taxes, foreclosures, etc.
- Make a web site. Not a web PAGE, a complete site. Do NOT misspell anything.
- Steal any competitor signs you see in yards. (Ok, don't. I added that one myself :P)
I'm sure people can add more if they wished.
What if you put them in another competitor's dumpster? |
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U812
390 Posts |
Posted - 08/07/2008 : 04:38:40 AM
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Great post Assassin!
I'll try to add to it later. |
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darkstar
18309 Posts |
Posted - 08/07/2008 : 05:51:55 AM
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| It's nice to see "real" training threads instead of thinly disguised ads...It's obvious those people have no idea what training is!...Great post Greg! |
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KellyVanguardNM
509 Posts |
Posted - 08/07/2008 : 1:24:15 PM
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| Great Post! |
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bestbet123
1577 Posts |
Posted - 08/07/2008 : 6:44:42 PM
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| I hate it when someone is smarter,better,and more talented than me.assassin your not that guy but great post anyway....lol |
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racerx
11454 Posts |
Posted - 08/07/2008 : 6:51:30 PM
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quote:
Originally posted by bestbet123
I hate it when someone is smarter,better,and more talented than me.assassin your not that guy but great post anyway....lol
Sorry, Assassin is probably the smartest person here. He's amazing. |
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assassin17
4172 Posts |
Posted - 08/07/2008 : 7:03:46 PM
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quote:
Originally posted by bestbet123
I hate it when someone is smarter,better,and more talented than me.assassin your not that guy but great post anyway....lol
ROFL!!!
Thanks. I needed that laugh today. I'm just trying to help get this back on track. |
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bestbet123
1577 Posts |
Posted - 08/07/2008 : 8:11:01 PM
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anytime bro,i just needed to inflate my ego a bit , thanks for understanding.
quote:
Originally posted by assassin17
quote:
Originally posted by bestbet123
I hate it when someone is smarter,better,and more talented than me.assassin your not that guy but great post anyway....lol
ROFL!!!
Thanks. I needed that laugh today. I'm just trying to help get this back on track.
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MisterVA
6634 Posts |
Posted - 08/07/2008 : 8:17:27 PM
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quote:
Originally posted by bestbet123
anytime bro,i just needed to inflate my ego a bit , thanks for understanding.
quote:
Originally posted by assassin17
quote:
Originally posted by bestbet123
I hate it when someone is smarter,better,and more talented than me.assassin your not that guy but great post anyway....lol
ROFL!!!
Thanks. I needed that laugh today. I'm just trying to help get this back on track.
So, you're really a JETS fan? |
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assassin17
4172 Posts |
Posted - 08/07/2008 : 9:05:30 PM
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I certainly am gonna watch Favre and skip GB! My Niners ain't looking so great yet. I guess I'm going back to the days where all the Cheesefreaks here spit on me again, because I'm seriously considering ordering the new Favre shirt.
But the Brewers still have a chance! Ned's a dud, but Ryan's a stud! |
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WorldWideWayne
2442 Posts |
Posted - 08/12/2008 : 10:12:56 AM
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quote:
Originally posted by assassin17
quote:
Originally posted by bestbet123
I hate it when someone is smarter,better,and more talented than me.assassin your not that guy but great post anyway....lol
ROFL!!!
Thanks. I needed that laugh today. I'm just trying to help get this back on track.
Get what back on track? |
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assassin17
4172 Posts |
Posted - 08/12/2008 : 12:25:57 PM
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quote:
Originally posted by WorldWideWayne
Get what back on track?
The training thread, which some of us feel should be for actual training and not for thinly-disguised advertisements.
Placing advertisements here is taking advantage of people who may not be skilled enough or qualified to make purchasing decisions if they are obviously seeking training. Not to mention there is an entire section devoted to ads and testimonials. |
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MisterVA
6634 Posts |
Posted - 08/12/2008 : 2:13:20 PM
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| Another idea is to ask Realtors about the sellers' intentions on their listings. You could pick up a few deals as pre-approvals from sellers ahead of time and not need to wait on the contract for their home to get in touch with them. |
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darkstar
18309 Posts |
Posted - 08/18/2008 : 05:18:20 AM
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quote:
Originally posted by assassin17
quote:
Originally posted by WorldWideWayne
Get what back on track?
The training thread, which some of us feel should be for actual training and not for thinly-disguised advertisements.
Placing advertisements here is taking advantage of people who may not be skilled enough or qualified to make purchasing decisions if they are obviously seeking training. Not to mention there is an entire section devoted to ads and testimonials.
Xactly!...Only those with very few posts fall for that, but it needs to be said... |
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assassin17
4172 Posts |
Posted - 08/20/2008 : 4:27:34 PM
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quote:
Originally posted by MisterVA
Another idea is to ask Realtors about the sellers' intentions on their listings. You could pick up a few deals as pre-approvals from sellers ahead of time and not need to wait on the contract for their home to get in touch with them.
Yeah, a twist on the FSBO concept. |
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TimmyZ1
698 Posts |
Posted - 08/25/2008 : 08:39:18 AM
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| Thanks Assassin, I was looking for that old thread very good stuff. Plenty of biz out there for the LO who understands a variety of programs |
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MisterVA
6634 Posts |
Posted - 08/25/2008 : 2:32:41 PM
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| For the first time in a while, I am doing a sales meeting at a Realtor's office. Talking about FHA & the changes recently made to the program. Usually I do not even talk about programs. |
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ritabradley01
3228 Posts |
Posted - 08/25/2008 : 8:50:57 PM
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quote:
Originally posted by MisterVA
For the first time in a while, I am doing a sales meeting at a Realtor's office. Talking about FHA & the changes recently made to the program. Usually I do not even talk about programs.
I wish you much success! |
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MisterVA
6634 Posts |
Posted - 08/26/2008 : 08:48:42 AM
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quote:
Originally posted by ritabradley01
quote:
Originally posted by MisterVA
For the first time in a while, I am doing a sales meeting at a Realtor's office. Talking about FHA & the changes recently made to the program. Usually I do not even talk about programs.
I wish you much success!
Went pretty well. I emphasized that more of their sales would be financed FHA than ever before and to examine their listings for eligibility. [Lots of springs and dug wells for water supplies here.] |
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ritabradley01
3228 Posts |
Posted - 08/26/2008 : 09:06:44 AM
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quote:
Originally posted by MisterVA
quote:
Originally posted by ritabradley01
quote:
Originally posted by MisterVA
For the first time in a while, I am doing a sales meeting at a Realtor's office. Talking about FHA & the changes recently made to the program. Usually I do not even talk about programs.
I wish you much success!
Went pretty well. I emphasized that more of their sales would be financed FHA than ever before and to examine their listings for eligibility. [Lots of springs and dug wells for water supplies here.]
Those are hard. Are some of those rural? Could they qualify for that rural loan people have been talking about?-I forget right now what it's called...... |
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MisterVA
6634 Posts |
Posted - 08/26/2008 : 7:11:42 PM
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| RD will take them. I am in what is known as The Northeast Kingdom of VT. About 1/4 of the land area w/ a population of about 60,000. |
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ritabradley01
3228 Posts |
Posted - 08/26/2008 : 8:45:25 PM
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quote:
Originally posted by MisterVA
RD will take them. I am in what is known as The Northeast Kingdom of VT. About 1/4 of the land area w/ a population of about 60,000.
Cool, I'm from Massachusetts originally, by the way. We were practically neighbors. |
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MisterVA
6634 Posts |
Posted - 08/27/2008 : 12:29:55 PM
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quote:
Originally posted by ritabradley01
quote:
Originally posted by MisterVA
RD will take them. I am in what is known as The Northeast Kingdom of VT. About 1/4 of the land area w/ a population of about 60,000.
Cool, I'm from Massachusetts originally, by the way. We were practically neighbors.
There are 2 kinds of people in Massachusetts. Those who vote for Ted Kennedy and those who throw their vote away. |
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Xanthan Gum
954 Posts |
Posted - 08/27/2008 : 1:56:26 PM
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| Good thread assassin. A lot of salient points in there for new LOs and vets, too. |
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