by Brian Brady
Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL
Loan originators, subprime mortgage blues got you down in the dumps? Let’s talk about a way to get your pipeline phat again. I’m going to give you a step-by-step plan to start, what Todd Duncan calls, the 90-day burn. If you follow these steps, and you don’t close 10 loans in the next 90 days, quit the business.
I’ve long been a believer in campaigning. A campaign is where you focus your promotional and sales efforts on a particular product type. The benefits of campaigning are astounding. You crank up the action volume (calls, door-knocking, mailers, e-mails, etc.) so SOMETHING happens. You learn a specialty because you must study the product to campaign. Consequently, you close a bunch of loans and half of them won’t be related to the campaign. Don’t worry about that.
Step One: Learn the FHA streamlined refinance guidelines. This loan program is designed for the greenest originator. I cut my teeth on this product when I started in the business. No credit scoring, no income documentation, and a current mortgage and you get an approval.
Step Two: Find a bunch of FHA loans . I’d call your favorite title company and get a list of HUD loans, closed within 10 miles of your office.
Step Three: Go on a mission. Go forth and communicate to these homeowners about the FHA streamlined refinance program with the zeal of a newly ordained priest. This is your career your fighting to save so pull out all the stops. Mail a postcard, call the customers (if they are not on the do not call list), even go so far as to knock on their door and hand them your card while explaining that you are an FHA streamlined refinance expert. If you are not an expert, dedicate three hours to this loan guidelines link and you’ll be one.
Step Four: Track your activity items. You should be able to talk to 20 people per day within the first 60 days. You will have met close to 1000 homeowners within the first 60 days. Statistics dictate that 40 of those homeowners will be doing something within the next 30 days about a home loan. You want to write 15 of those 40 loans to close 10.
FAQs:
YOU: Should I work Saturdays?
ME: Yep, I said “missionary zeal”. You are fighting for your career here.
YOU: What if they don’t want a FHA loan?
ME: Write whatever loan they want. It’s about making contact and taking apps.
YOU: What if they don’t have a FHA loan anymore?
ME: Say this verbatim: “Cool! You need any money?”
YOU: If I do go door-knocking, should I e-mail them a 1003 loan app?
ME: Carry one with you at all times. Handwrite the loan app and have them sign it on the hood of your car at a Circle K, if necessary.
YOU: My boss hates when I write loan apps that can never fund.
ME: Find a new boss.
Here is the truth: I’m trying to fool you into doing three things: (a) gaining self-confidence and expertise (b) getting you off your ass and doing your job; talking to lots of people, daily, about loans (c) developing the habit of writing loan applications. One a day should always be your goal.
Was that so bad? Now, go git you some!
Jeff Brown says:
Brian – That’s it, I’m now convinced we had to be brothers in another life. 🙂
I’ve recently, from the command post of BawldGuy Inc., decided Josh is ready to saddle up. He probably thinks I’m a year late, but what does he know? 🙂
He’ll be cold calling 4-6 hours daily until I think he’s acquired his sea legs. He’s hungry to start which is a good sign. Once I think he’s been ‘blooded’ I’ll let him call as a follow-up to letters sent to the property owners.
I predict he’ll generate total business in the next 90 days in range of $3-5Mil, as the vast majority will be exchanges.
Your advice to these mortgage guys hanging on by their fingernails will save dozens of careers. They probably don’t, at least now, understand what a huge service you’ve done for them.
Marketing is great, and it has certainly advanced the cause in my world — but stirring the pot yourself will never fail to produce results.
Of course, you have to have the huevos to do it in the first place, right Brian? 🙂
May 4, 2007 — 9:45 am
Brian Brady says:
” but stirring the pot yourself will never fail to produce results”
Always, Jeff. That’s why the war stories we trade our so invaluable. Banging on doors for listings in Spring Valley, making offers with seller-carrybacks, banging on doors for FHA refis in Goodyear, or selling HELOCs to business owners in Kearny Mesa.
You can ALWAYS, ALWAYS, work your way out of a hole in our businesses.
IF..you have the huevos to do it.
May 4, 2007 — 2:42 pm