by Brian Brady
Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL
REALTORS constantly solicit banks and mortgage lenders for REO business. Why isn’t the producing REALTOR, as a matter of course, soliciting business from loan originators?
I posed this question at Unchained Phoenix ’09 and you would have thought I asked the REALTORs to walk on coals…at first. A few bright agents listened to my reasoning:
- I talk to lots of people and do a FAIR job at managing my database.
- I subscribe to a service that notifies me when a past client’s home is listed (so I can jump on the new loan).
- I lend nationally although that doesn’t matter.
- I don’t charge a referral fee for relocating buyers; I just want their new loan.
Agents often consider themselves to be the center of the relationship but most don’t manage that relationship, post-closing, very well:
In finding a real estate professional, 44 percent of buyers were referred by a friend, neighbor or relative, 11 percent used an agent from a previous transaction, 7 percent found an agent on the Internet, 7 percent met at an open house and 6 percent saw contact information on a “for sale” sign. Six other categories accounted for smaller shares each.
The light bulb went off for Cindy DiCianni when I suggested that she look at last year’s business to discover the source city; she helped nine San Diegans settle in Kansas City in 2008. She promptly added me as a “referral contact” to her database. Alice Held did the same, promising me an invitation to her Holiday Party.
Teri Lussier asked me about this in an e-mail today:
Lenders court Realtors. Do Realtors court lenders? Often?
Of course we court REALTORs and REALTORs never court us…NEVER. I think that’s really dumb. Forget that I’m “just the lender”. I’m a “person” who has influence. I’ll most likely encounter a relocation to Dayton (or Kansas City) once every three years. if you’re tryng to close 24 transactions a year, that means you should market to 75-100 loan originators, around the country.
What would a lender like/need/want in order for me to be their go-to Realtor of choice?
If you’re in San Diego, a monthly phone call wouldn’t hurt. If you’re from Dayton, a call once a quarter would be great. Annually, at least. Send me your recipes, too. I’ll throw them out but you’ll own 17 seconds of “brain time”, once a month. Nobody from Dayton markets to me so those 17 seconds will be a HUGE victory for you.
What makes you shoot your clients out to certain Realtors more than others?
Presence, that’s all. Comment on my blog or Facebook page. Answer once of my questions on LinkedIn. Send me a recipe and call me a few times a year asking if I know anyone moving to Dayton. Do that and you’ll get the three relocation buyers a decade I refer to your city. Sean Purcell calls this Epiphany Marketing; I don’t need you until I need you but when I need you, you better be on my mind.
Call me first and ask permission to market to me. Prove to me why being nationally networked with competent real estate professionals is in my best interest. Do that with 100 loan originators and it’s game over; you win.
The guy or gal with the most friends wins…always.
PS: As always, some will resist REALTORS think the “lenders begging for business” paradigm is sacrosanct. That’s okay. You (readers) are different.
PPS: Wondering if it works? Ask Jeff Brown.
The Mortgage Cicerone says:
Brian,
This a masterful or contrarion example of looking outside the normal herd mentality mantra of marketing. Additionally, you are spot on when stating Realtors often see themselves as the center of the real estate transaction universe. When I originated, I had a great annuity of referrals from my Realtorbase, however the Realtors I worked with was small, selective yet very productive. The reason; both they and I worked together in a strategic alliance that focused on the success of the whole and not just optimizing for the self. Long story short, they did NOT view themselves as the CENTER of the transaction universe, Rather, we worked together in efficient supply chain coordination for our clients.
My guess, while this is truly a great post, most will ignore the power behind the concept you relayed!
Great post Brian!
May 6, 2009 — 11:49 pm
matt says:
is there a collaboritive database that could work for like minded individuals that you are someone you may know is aware of?
May 7, 2009 — 1:42 am
Don Reedy says:
One of the Black Pearls I took from Unchained Phoenix II was that Social Media Marketing can be a light that shines onto the way I and other real estate professionals think about networking.
Brian, you push, push, and then push once again about using our heads and our common sense to develop or sustain relationships that will add value to both our professional and regular lives. This idea, which unfortunately I wasn’t a part of at Unchained, is just a face bending, spot on, oh my gosh moment.
The message continues to leak out, so keep on keeping on with that fabulous faucet you call your social media marketing hat.
May 7, 2009 — 5:45 am
Teri Lussier says:
>Why isn’t the producing REALTOR, as a matter of course, soliciting business from loan originators?
I’m thinking this goes back to Ira’s post, and the ‘List You Last’ biz model for RE agents. Buyers are a by-product of listings.
>Agents often consider themselves to be the center of the relationship
I would love to see the business model evolve into consumer-friendly/consumer-centric partnering.
>Prove to me why being nationally networked with competent real estate professionals is in my best interest. Do that with 100 loan originators and it’s game over; you win.
Don’t tell @GenuineChris, but I’d much prefer that to cold calling. 😉
Thanks for the thoughtful answer, Brian.
May 7, 2009 — 5:48 am
Brad Rachielles says:
Thanks Brian. This mentoring of us all drives home the Facebook webinar of months back. This should have been so obvious to me… there are “Two Sides To This Coin”!
May 7, 2009 — 9:28 am
Al Lorenz says:
I’ve got a long list of things to work on from Unchained. But the CRM and what, how and who of managing my database are the cloudiest issue of all for me.
It’s great that you are open to being asked to be marketed to. But, for many even the question is uncomfortable and a yes may not really be meant. The point is, all my contacts aren’t the same in how they like to be dealt with or even how I might ask permission from them to market to them.
So, while I’m struggling with how to manage the funnel in a way that works best for me, I’ll tell you something. I’m happy to stay in touch with you whether you send me business or not. There’s value in the relationship for me beyond whether you send me qualified leads. Heck, from what I can tell you are provocative, smart and even fun!
Life and business relationships change and that person you throw out of your funnel today might be your best customer next year. I’m pretty much a fan of staying in touch with the folks I value the most. I’m just not sure how to best put that into my funnel and smoke it!
Thanks for keeping me thinking about it.
May 7, 2009 — 1:15 pm
Mike Bowler Sr says:
Great points Brian, I believe the approach you have presented will get some Realtors thinking win win vs. what can you do for me. After 31 years in this business I can remember ever taking a mortgage originator to lunch, coffee or breakfast, but have been wined and dined by plenty. I just made a note to do that next week in addition to checking you out on LinkedIn, Facebook and Twitter. You never know, maybe you’ll be sending someone to Lansing Michigan or I will be referring someone to you needs a mortgage. I guess that’s how it’s suppose to work. See you on Twitter. Mike
May 7, 2009 — 7:17 pm