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The Power of Active Rain - The referral netowrk - But can it backfire???

By
Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

 

Active Rain Networking

Referrals are very important in any type of business. Active Rain can be a very promising place to get those referrals. But is it a gimmie when searching here in the 'Rain'?

I just read this post by Alex Morris -

How does one become your "trusted" Rainman?

He brings up some good points, but I wanted to touch base on some key reminders.

 

Before I continue.... I think Active Rain is an excellent networking place to learn, to network with others, and a place to grow on so many levels. But remember, people are people no matter where found, what their titles are, or how long they have been in business.

 

 

the real person behind the mask

 

Anyone that knows me knows that I am a very trusting person sometimes to a fault. I give the benefit of the doubt in most cases. And overall, I try not to judge. I try to live by these philosophies daily, and sometimes it will bite me in the rear.

What triggered my thought process in writing this after reading Alex Morris's post was because I am a firm believer that you just can't assume someone would be a good to excellent referral source just from a few good written posts. I know of a good friend here on AR that I met my first year, who was burnt by handing out a referral to a person across country because this person was #1 in points in a few categories and who was writing posts daily. This person sounded good, sounded sincere, and like a person that loved helping others. Well, it cost this person not only their reputation, but a listing that they had with this couple who was looking to buy in another state. It goes to that old saying that many can hide behind a mask, until they are truly uncovered.

 

 

I read several posts daily, here in the 'Rain' and out in the blogosphere. I am not perfect, nor am I God, or do I know everything. But if I am unsure of a certain product or idea, I am going to double and triple check it. I just read a post the other day that just didn't sound right. It was comparing a FHA scenario vs a certain kind of conventional loan program. It didn't sound right and I called the loan officer, who I knew who I was, because we both followed each other and had left comments on each others posts. We talked briefly about this post and after asking a few specific questions, this person wasn't 100% sure where or how the loan could be done. Excuse me?  It was only 24 hours old. We spend the next 20 minutes on the phone and they still didn't have an answer. Well, it's been 4 days since then and even after I left a voice message and an e-mail. But you know what was more disturbing? Several of the comments that were left after the post.

"Wow, glad I subscribed to you. Good information and food for thought. FHA slowly fading away? That is a great topic for a blog. I'm a fan."

"Interesting ___________.  I didn't know about this product.  I'll indeed check into it, Thanks."

These comments scared me for several reasons. Not only was the information incorrect, but misleading in a certain manner. The example used was that of a 720 credit score. Sorry people, this is not the norm and it made the product more appealing. But once I dug deeper, there was a major pricing hit of about 2.5 pts that was missing in the whole equation. If you add this, then that FHA scenario is actually better.

 

 

Conclusion : I don't want to harp on those that post on Active Rain. But I see many that are in awe of specific posts because of the end result. And I guess many feel that all posts on AR are correct. In my opinion, you should not choose a person right away, no matter where you find them or how they sound. I could give many examples of what I have seen and read, but we just need to think before acting. How valuable is your client vs handing out a quick referral on Active Rain just because they had the most points.... or because they write excellent posts... or because everyone loves them?  Just food for thought. Do more than research... follow them for 3 to 6 months. Call them, interview them... others.. etc, etc.  Again, this is just my opinion and I am not attacking those on AR... just remember, we are just people on an excellent site. It doesn't mean that we are all above the rest.

 

 

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

Jeff, I have learned that high point totals do not a reliable producer make. Great advice. Call and get a feel, follow them for a while. 

Nov 13, 2010 01:21 PM
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

Jeff you make a valid point. I have had good results so far on AR but nothing is guaranteed!  Best of luck in future referrals!

Nov 13, 2010 01:59 PM
Cindy Marchant
Keller Williams Indy NE 317-290-7775 www.marchantteam.com - Carmel, IN
"Cindy in Indy" , Realtor, Fishers Real Estate

I have often wondered if we should also be required to post a few of our statistics (i.e. number of transactions, average sale price, average days on market) on our profile.  Consumers "should" ask about this, but often they don't.  A good writer doesn't necessarily equate to a good Realtor.

Cindy in Indy

Nov 13, 2010 02:42 PM
John Pusa
Glendale, CA

Jeff - I always examine the referral, I don't pursue a referral, if I suspect a problem will develop from that referral.

Nov 13, 2010 04:03 PM
Steve Scheer
Realty Oasis - Metro Brokers - Highlands Ranch, CO
Highlands Ranch Real Estate - Denver Real Estate

Great points Jeff, Its always important to delve a little deeper before giving out a referral to make sure they walk the walk.

Nov 14, 2010 01:58 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

PHILIP... . I agree 100%, yet I have heard some in the Rain, that is how they chose the referral person.  I guess common sense doesn't allows set in. thanks

DAMON... . I have some good results in both giving and receiving... yet I still needed to make this point, based on comments that I have read.  thanks

CINDY... .  I truly don't think stats mean as much either... Just like years in the business. I closed a loan from a loan officer of 31 years, when I had 16 yrs at the time.. and this person had the deal fro 35 days ... and the day before closing, they denied the loan...and I closed it in 6 days...  this person could have closed thousands... the reason why it was denied, credit issues... which I helped through.. yet the whole time, he kept on saying... you'll close, you'll close...  thanks

JOHN.... .  it can be tough at times no matter how well you review things... at times you just don't know until it closes or not..

STEVE.... .  I think one should.... anyone can sound andlook good, right?

 

Nov 14, 2010 05:07 AM