Response Rate from mailings to realtors.

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peter

4543 Posts

Posted - 09/04/2008 : 11:59:13 PM

Anyone here has ever done mailings of postcards and flyers
to real estate agents in different companies?

What is your experience with the response rate and the
number of purchase loans you have closed thru your mailings?
If you mailed out 100 flyers or postcards, did you get at least
one purchase loan funded with a realtor?

Thank you for your input.

Peter

austinmp

305 Posts

Posted - 09/05/2008 : 02:05:55 AM

I'd think these types of ads to Realtors might be really low response rate right now. Many realtors are in forced hibernation and most realtors already have Conventional and FHA loan people they use.

Better to go to the net or consumer direct ads I'd think. Or even buy targeted mortgage leads.

In the past I had a few % max response rate to realtor flyers, but there's alot that can't be closed out there now in the current environment. It used to be different, we could actually get things approved with other lenders, get exceptions, etc. It's so standardized now.

Bob H

300 Posts

Posted - 09/05/2008 : 06:24:55 AM

I have been finding eager realtors to work with locally in my state (MD). It seems that many LO's have left the business leaving realtors to seek new help with financing. Realtors know how challenging the credit market is any they are looking for experienced LO's who can navigate the ever changing landscape and get deals closed.

It's not like it was several years ago. Realtors are more open than ever to working with someone new. You just have to prove yourself. I was recently able to pull off a no score/alt trade FHA purchase. The seller's agent was so impressed that she referred me two clients the next week. In July I was able to get an investment purchase clear to close 2 weeks before the settlement date. We were able to move the date up 10 days and get everyone paid faster. The buyer's agent was so impressed that she invited me into her office to speak to all of the agents about today challenges and how to get deals closed.

I am considering mailing to realtors too. It's not about rates anymore. I have found that realtors could care less about rate sheets nowadays. Realtors just want deals to close and close quickly with no hang-ups. Selling service is the way to go.

peter

4543 Posts

Posted - 09/05/2008 : 09:21:19 AM

Bob, thanks for your input. I am encouraged by your
information and am pursuing the realtors in my Los Angeles
market. I had long neglected this market but it seems
only FHA purchases are thriving in my area now and this
business can only be done effectively thru realtors.

There has been much negativity about working with realtors,
but working with realtors is a necessary component of the
L/O business. Just like anything else, you have to be selective
as to which realtors you will be working with.

Peter

Cash Doctor

851 Posts

Posted - 09/05/2008 : 09:57:52 AM

Probably bad but add this and your conversion will go through the roof.

1) Go to networking event
2) Meet Realtor ( Have a good converstation grab his/her card)Feel him out if he is any good (Production etc..)
3) Send him a book ( Something Salesy and cheap)the next day
4) 7 days from there send him something useful for his business (article from paper etc..)
5) Call him 3 days later and set up a sit down.
6) At end of sitdown shake hands and now you have a new realtor in your stable.
7) Stay in touch every 10 days (with an email, phone call post card etc..)

Rinse Repeat and then you will have 10-15 Realtors in your stable,In 2-3 months. Book may be 5-10 Bucks but much cheaper then sending direct mail to a bunch of housewives who sold 1 house back in 2003 to their brother.

peter

4543 Posts

Posted - 09/05/2008 : 10:34:22 AM

I spend 27 cents per postcard and I am mailing out to
100 realtors who presently have listings. I will also
realtors' meetings but I understand that the names of
the actual closers can be obtained thru the local board.
If I get to the real closers by targeting them, my time
can be better spent than going after, as Scott rightly
said, the housewives who only sell to their relatives
once in a while.

How do you separate the closers from the loafers then?
Do you think the closers are the realtors who have current
listings? It's hard to tell from meeting them as everyone
of them seems to have some success story about being able
to sell. I guess I will have to check with the local board
and keep stalking the real closers whose names were on the
records of the local board.

And this should be a separate thread.

Thanks,

Peter

Cash Doctor

851 Posts

Posted - 09/05/2008 : 10:45:45 AM

I am about to sign up as an affiliate of my local real estate board. This should help me pinpoint the Realtors worth going after. Suggest you do the same. Or talk to a Realtor you are buddies with and have him put some names togethor for you. Then hunt them down.

Cash Doctor

851 Posts

Posted - 09/05/2008 : 10:49:21 AM

Randon Postcards to a realtor isn't going to do to much. When you get a postcard from a title company at the office. What do you do?

Exactly.

Get out and shake some hands. The days of telemarketing and mass marketing to Realtors or customers seem to be gone (or at least have eluded me) time to get back to face to face and build relationships.

Take that $27 bucks and 1 hour of your time and treat a realtor to lunch. Much more profitable and you get a burger out of it.

peter

4543 Posts

Posted - 09/05/2008 : 11:52:05 AM

I am actually an in-house L/O in a Century 21 office but
I am not getting much business as the only activity in
FHA purchases now is in some desert area about 2 hours north
of L.A. where I am. One L/O did mass mailing of flyers and
she got 3 FHA purchases from realtors she had never seen.
I myself got a nice referral check from a realtor in Sacramento
which is about 2 hours by plane from where I work. I just
called her and sent her an upsidedown homeowner whose home
she sold within 3 months and I got a referral check just for
a few phone calls.

Joining a local board costs money and going out to lunch
will cost me even more. Right now, I am on a tight budget and
have to start my realtors' campaign on a shoestring. So, I
have no choice but to mail out a 27 cent postcard to realtors.
If I spent $27 (100 cards at 27 cents each) and I get just
one deal, it will be worth it.

My pitch is that I have homeowners who are upsidedown and
would you list them for short sale? These are the homeowners
who came to refi with me but they can't as there is no value
left in their homes. So, I have something to exchange with
the realtors I am postcarding.

Peter

Cash Doctor

851 Posts

Posted - 09/05/2008 : 12:01:56 PM

Not bad peter. Keep us up to date. That does sound pretty interesting. And offering up an potential short sale to some of my local Realtors may help me get into their good Graces.

Get it going Peter and let us know your findings. Thanks

peter

4543 Posts

Posted - 09/05/2008 : 1:29:43 PM

The problem in getting the purchase business done is the execution and
the quality of the realtor you work with. I must confess that I have been
stuck with a row of loafers and losers in my Century 21 office and by the
time I found out that they really have no ability to sell let alone conclude
serious business I have already lost credibility with my customers whom I have
referred to them. "Familiarity breeds contempt." I should say, and with the
exception of 1-3 realtors, I no longer indulge in a fruitless conversation with
the loafers and losers who often hang around the coffee machine relishing themselves
with cookies and cakes the title reps bring to them. We do not enforce the
rule "Coffee is for closers" in our office, and it really is "More Coffeee and
Ccokies for Losers and Loafers" type of existance that I observe daily.

Hate to brihg the realities into our discussion. Therefore, I am on the hunt
for good quality and good producing realtors. I am working thru my favorite
title rep at Ticor to snoop around and tell me who are the good realtors, and you
might want to do the same. Do not discard the title reps as door-to-door salesmen,
as they could be very valuable to you as a purveyors of inside information.

Let us continue this interesting discussion to share our experiences the way
the wildlife hunters gather over an open fire discussing how to hunt the desired
white tail deer!

Peter

Cash Doctor

851 Posts

Posted - 09/05/2008 : 1:36:59 PM

Peter - That is why I have found local networking to be the best. You are going to run into realtors who are serious and are out at networking events and not at the water cooler eating bon bons.

There are plenty of free networking events. Then follow up with them and meet them at their office instead of lunch. On the cheap.

Great idea with the title guys I need to ask them to set me up with some Realtors. Also I work out of the house and a Title company lets me use there office to meet clients. Beautiful office overlooking the pool of the $20,000 grand a month country club. Its a hit with customers. And then you introduce them to the title people.

The customer falls in love and basically tells me to charge them 5 points.

Well that last part maybe not.

haha.

Peter - You seem to be singing a different toon. Couple of months ago I thought you were going to jump off a bridge with your non stop depressing posts.

Good to see Peter 2.0

haha

peter

4543 Posts

Posted - 09/05/2008 : 1:58:53 PM

Scott wrote:

"Great idea with the title guys I need to ask them to set me up with some Realtors. Also I work out of the house and a Title company lets me use there office to meet clients. Beautiful office overlooking the pool of the $20,000 grand a month country club. Its a hit with customers. And then you introduce them to the title people."

I am doing the same as you're. I am using the nicer office of an escrow
company for meeting customers instead of ours due to nicer appearances that
can impress my customers. In return, I give them business and they are
only too happy to accommodate me these days.

Thanks for your advice and sharing your experiences with us. Let us go on
the hunt for the right realtors. I will not pass up any free lunch or free
diner gathering of realtors from now and indeed will suggest to various title
reps to organize a rendezvous to help their ailing business and mine.

Peter

isitfree

764 Posts

Posted - 09/05/2008 : 3:25:00 PM

quote:
Originally posted by peter

Let us continue this interesting discussion to share our experiences the way
the wildlife hunters gather over an open fire discussing how to hunt the desired
white tail deer!

Peter,

I have eight realtor appointments set so far for next week.

Four set for Monday, two Tuesday, and two on Wednesday.

All by the phone and all about short sales. No money spent to get the appointments and no in person visits.

You've started a good thread. I'll bet there are tons of ways to get realtor business these days that have yet to be discussed.

Paul

austinmp

305 Posts

Posted - 09/05/2008 : 3:46:01 PM

I think more personal contact is better. Mailers just get tossed. But with the turmoil in the industry, Realtors might become valuable loan sources again. If they see you as helping them to make a living, they will work with you.

Pick up the phone or go out networking. It's good to do anyway.

mykal5

2764 Posts

Posted - 09/05/2008 : 3:58:40 PM

quote:
Originally posted by peter

Anyone here has ever done mailings of postcards and flyers
to real estate agents in different companies?

What is your experience with the response rate and the
number of purchase loans you have closed thru your mailings?
If you mailed out 100 flyers or postcards, did you get at least
one purchase loan funded with a realtor?

Thank you for your input.

Peter

You will get better results if you send them to agents who are less concentrated on getting listing and are actively trying to pursue buyers. I would also send them useful tools. Since you are in CA this might not work but I would concentrate on informing Realtors on USDA Rural Development loans, and also cities within your area that provide down payment assistance grants. What Realtor wouldn't get excited about 100% loans?

I have not given it as much effort as I should but in the last few weeks the little effort I have put in has brought me a few loans. When I say little effort I mean very little effort.

peter

4543 Posts

Posted - 09/05/2008 : 6:49:46 PM

Michael wrote:

"You will get better results if you send them to agents who are less concentrated on getting listing and are actively trying to pursue buyers. I would also send them useful tools. Since you are in CA this might not work but I would concentrate on informing Realtors on USDA Rural Development loans, and also cities within your area that provide down payment assistance grants. What Realtor wouldn't get excited about 100% loans?

Many thanks, Michael. I am studying USDA loans now as there are also many
rural areas in California as well. As for DAPs or silent seconds, there many
many programs in most cities of California but the most popular one is the
California Housing Finance Agency Program which have CAlHF Housing Assistance
Program (CHAP) and California Homebuyr's Downpayment Assistance Program (CHDAP)
which are not going away like the DAP programs under Fannie/Freddie and FHA
which are private-sector DAP corporations.

I am targeting realtors whose names have been recorded as sellers of
closed purchase transactions and this information can be obtrained from the
local board. Just 2-5 of them who produce consistently will be good enough
if we have an on-going relationship. I hope to reciprocate by sending them
upsidedown customers for short sale or by sending them business from buyers
whom I have prequalified.

One good thing that I have observed now is that the realtors who are
surviving this climate are normally taking the business seriously as otherwise
they would have left the business. Almost all of them concentrate on REOs,
foreclosures, etc. and they realize that they need to work with experienced
L/Os to get their transactions closed.

Peter

velecico

3935 Posts

Posted - 09/05/2008 : 6:56:07 PM

quote:
Originally posted by peter

I am actually an in-house L/O in a Century 21 office but
I am not getting much business as the only activity in
FHA purchases now is in some desert area about 2 hours north
of L.A. where I am. One L/O did mass mailing of flyers and
she got 3 FHA purchases from realtors she had never seen.
I myself got a nice referral check from a realtor in Sacramento
which is about 2 hours by plane from where I work. I just
called her and sent her an upsidedown homeowner whose home
she sold within 3 months and I got a referral check just for
a few phone calls.

Joining a local board costs money and going out to lunch
will cost me even more. Right now, I am on a tight budget and
have to start my realtors' campaign on a shoestring. So, I
have no choice but to mail out a 27 cent postcard to realtors.
If I spent $27 (100 cards at 27 cents each) and I get just
one deal, it will be worth it.

My pitch is that I have homeowners who are upsidedown and
would you list them for short sale? These are the homeowners
who came to refi with me but they can't as there is no value
left in their homes. So, I have something to exchange with
the realtors I am postcarding.

Peter

Wont the other realtors that are not C21 see you as competition , or just to close to " sleeping with the enemy " ? If you are known as the " in house LO " , I dont see a REMAX , CB , realtor sending one of their leads to another RE office

peter

4543 Posts

Posted - 09/06/2008 : 7:09:51 PM

Nickolas wrote:

"Wont the other realtors that are not C21 see you as competition , or just to close to " sleeping with the enemy " ? If you are known as the " in house LO " , I dont see a REMAX , CB , realtor sending one of their leads to another RE office"

Yes, they do and although our mortgage brokerage is registered under another
name not affiliated with Century 21 those who come to visit me in the Century 21
office often querried why I am going outside to give referrals to Prudential or
CB agents. I tell them frankly that the referred customers that I have will be
better served by the outside agents who are area experts in the localities. Our
Century 21 office is only localized in upperwest SF Valley, north of Los Angeles
while I originate loans thruout California. Once I explained this to the realtors,
they understand and we do business. Of course, when it comes to relocation
customers and referrals, I prefer to do this business with other Century 21 offices
that belong to the same national franchise system and the other C-21 realtors seem
to feel the sense of trust when dealing with agents from the same house franchise.
It's all about money, as most agents including myself would be afraid to deal with
a never-heard-of real estate company in referring customers and we prefer to refer
our customers in other localities to Century 21 offices that belong to the same
franchise as ours. As of course we always get paid without any problem.

Many agents feel that they should be independent of any franchised real estate
company and do not want to be identify as an in-house L/O. I can understand their
concern and they may have some valid points in terms of building a long term
relationship with some high-powered realtors who do not want their customers to
become the next target propects of our office. But remember that after recording
the identity of the buyer becomes a public record and is subject to prospecting
by anybody anyway.

Peter

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