For the last month I have had the good fortune of speaking at a number of events across Canada sponsored by Genworth Financial, Merix Financial and Macquarie Financial. The intent of this cross-country “MGM Road Show” was to allow real estate and mortgage professionals to come together under the same roof to foster stronger working relationships. Having a foot in both industries makes me uniquely suited to understand the challenges both groups are experiencing.
I realized early in my real estate career that if I had a strong relationship with great mortgage professionals, I could close more transactions. I went in pursuit of such an individual and the person I chose was not only well networked in the community, but had the experience to know how to package my sales properly so lenders could appreciate my clients. Not only did my income go up, but I no longer had to babysit any of my deals after the offer was accepted so I had more time to prospect for new business. It was a win-win relationship because both of our volumes went up, we both created a professional image, and our clients receive an exceptional level of service so our repeat and referral business increased. In my travels around the continent it is apparent that many relationships between the real estate and mortgage communities are a mixture of love and hate. My best advice to you if you want to increase your volume is to increase the quality of your Realtor referrals over the next few months.
TIP #1: Stop trying to connect with EVERY Realtor. Choose the top 25 agents in your trading area and develop a marketing campaign to start to build relationships with them. Develop a unique marketing campaign that suggests you have solutions to their challenges. Don’t trade on rates – trade on service. You can check the MLS system to determine agent volumes. You are searching for Realtors who sell more than they list (buyer agents) and check for teams who do large volumes. If you have ever received a deal that was impossible to finance due to the quality of the client, this is a byproduct of a Realtor that does not know their craft, and in turn, they will likely blame you for their client’s inability to receive approval. This kind of business takes you away from good business opportunities, and costs you time and money. It is better to partner with agents who understand that showing houses and writing contracts with clients who most likely will not get financing is nothing more than a fishing expedition. The best agents ensure the quality of their opportunities by having their buyers pre-qualified for their mortgage in advance to ensure they aren’t wasting time. These agents know that in order to make a 6-figure income they need to work with good quality clients.
TIP #2: Create a value proposition based on what Realtors need. Understand what it is they need to be more successful and ensure you deliver just that. Realtors want real-time communication about what is happening with their clients. The best way to accomplish this is to set up a checklist for every client you work with that includes sending all pertinent information to the Realtor at specific timelines. Realtors want to work with mortgage professionals they can trust to take care of all of the financial details without getting involved in the sale details. They need to be kept informed immediately if problems arise. NOTE: I understand we have privacy legislation that restricts us from sharing some details unless the client signs a waiver, so my advice is to ask all clients to sign waivers so their Realtor can be kept abreast of any important details that may affect closing.
TIP #3: The quality of the referral source will depend on who you decide to focus your attention on. Always chose quality over quantity when searching for your referral sources. Remember, quality referral sources will ensure more volume, better quality deals, happier clients and more income with more time off. This is how you build a business by design, not by accident.
To find out more about how to develop and grow such a business, visit my website at www.LeadersEdgeTraining.com to see when the next Leader’s Edge Training course for mortgage professionals will be offered in your area.
I wish you great success this month.
President, Leader’s Edge Training