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Does Your Lender TRULY Invest Into The Realtor Partner? Really?

By
Mortgage and Lending with Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 NMLS ID# 158606

I run a region, run a branch and yes, I originate loans as well.  I spend a lot of time recruiting on top of that.  I'm amazed at what I hear from lenders.  Realtors want loan officers to help them build their business.  They don't want them to create their business.  If lenders could do that they'd be realtors, but we've been called into lending and not real estate sales.

I've interviewed well over 200 lenders since I began recruiting folks a few years ago and am amazed that there is such a disparity in lender capabilities.  As individuals, there are just some people that don't belong in this business.  Not a knock on them.  They're good people, but the DNA that they possess is really geared for some other type of profession.  Some of the lenders have all the skills, but they still can't conquer the business.  In my business, I'm so sick of lenders who buy leads.  I hate that.  I despise it.  For those folks, they can't make a sale unless they buy leads.  In other words, they can't build and establish relatinships with realtors, so they get transactional instead of relational.  Wow....that leads me to this...

Lenders Need to Add Value to their referral partners!

Good lenders know how to do that.  I have to admit when I first got in the business my M.O. was...

"Hey, I'm Larry Bettag, I'm a good guy, I have good rates and I'd like to help your clients.  Call me if you need me." 

 I had a good boss who gave me materials and some good coaching that enabled me to grow.  Plus, fortunately, I had the desire to be the best.  I wanted to lay it all out on the line.  I grew and grew and finally learned a few secrets that have enabled me to work with the top agents in Northern Illinois. 

So, What's the Problem?

Mortgage companies don't teach loan officers how to add value to realtors.  They don't teach loan officers how to add value to realtors.  They don't teach loan officers how to refer contracts, YES CONTRACTS, to realtors.

I'm a substantial part of my realtor partner's income!Long Roads to Navigate means you need someone in for the long haul!

  • In 2007, I referred 22 contracts to my realtor partners.
  • In 2008, I only referred 12 contracts, but they were greatly appreciated.
  • YTD in 2009 I've referred 14 contracts.

Pretty huge stuff!  We have our ups and downs.  Client's come with their own set of issues, but I'm adding value to them.  Once I was able to learn how to refer clients to my realtor partners, life became so much more enjoyable for each of us.  It's important to me to have good realtors to refer my clients to. 

Great Mortgage Companies (and I mean GREAT ones) Need to Help Loan Officers Grow!

Mortgage Companies need to invest in their loan officers.  Sure some have better pay plans or some have a great "new" and "niche" product.  Even if a loan officer gets paid some ridiculous commission split, but they don't know how to get business, what's the use?  Seriously....I'd rather get paid some fair commission and close 10-20 loans per month than get paid 100% and just close a deal here and there. 

Until mortgage companies know that they need to invest in the loan officer through coaching, teaching and mentoring, lenders will be all about trinkets, goodies and transactions.  Once a loan officer can refer to a realtor, can coach a realtor and can help a realtor become accountable for the things that are important to the realtor, then that loan officer can be on the road to a great and prosperous relationship with their clients and their referral

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Comments(15)

Stanley Stepak
Howard Hanna - Avon Lake, OH - Avon Lake, OH
Realtor - Avon Lake, Avon, Bay Village, Westlake,

I hear you.  People in the business need to be educated and focused on for their skills as well as self worth.

Mar 05, 2011 04:10 PM
Shirley Soforic
F. C.Tucker co. - New Palestine, IN

My mortgage guy has been a friend for years.  I helped him as a young man.  He has been around now about 25 years.  He relies on me for business, which I do.  However, he pays my postage for my mailings.  Pretty cool arrangement.

Mar 05, 2011 04:16 PM
John Michailidis
Real Property Management of Sarasota & Manatee - Sarasota, FL
Real Property Management of Sarasota & M

In my experience, lenders are basically worthless and mostly dishonest.  I consider them a necessary evil, but I never trust any of them.

Mar 05, 2011 04:25 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

It's interesting you say this. I had one mortgage person who solicited me based on him having a lot of relationships and real estate biz he wanted to refer (I knew him thru a professional referral group). I referred 5 clients his way & he never once referred even a potential person my way.

Mar 05, 2011 04:26 PM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Stan....thanks....at that they do!

Not bad....but when I mean invest....I mean invest in you perosnally....not just in dollars!

John...Have you been an idiot all your life or just since birth? There are a lot of honest lenders.  People say the same about attorneys, in fact, even more than lenders.  I'm both...you're one of them.  I invest in relationships.  I know nothing about you, but from your unprovoked response, I think you're a quasi jerk!

Michelle.....it's supposed to be a two way street!  Really.  They need to invest in the relationship!  Too bad you got scammed!

Mar 05, 2011 04:34 PM
Samantha Davault
Alexander Chandler Realty - Fort Worth, TX
Fort Worth, TX

Larry, its great when there is a true referral partnership between a loan officer and a Realtor.  If both parties are great at what they do, then it is easy to send business both ways. 

Mar 05, 2011 04:35 PM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

some lenders truly feel like partners while others seem to add no value at all. Really good post...thanks.

Mar 05, 2011 05:15 PM
Cinnamon Wright
Wilmington Real Estate 4U 910.547.1446 - Wrightsville Beach, NC
Assistant to Tish Lloyd

We work hard at nurturing our relationship with the lenders in our area.  It's not always recirocated, but when it is, everyone benefits.  I love working with the lenders we've known for years and can trust to treat our Client's with respect.  Makes us look good!

Mar 05, 2011 11:29 PM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Larry,

Good post, you just have to put the right people together.  A

Mar 06, 2011 01:50 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

I wish I had more lender partners like you in my area...I seem to do all the referring to them, with nothing in return :-(

Mar 06, 2011 02:22 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

I wish I had more lender partners like you in my area...I seem to do all the referring to them, with nothing in return :-(

Mar 06, 2011 02:22 AM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Sam....it makes it great doesn't it!

Jeff....big difference, isn't there?

Cinnamon....it makes a huge difference as it's a complete reflection on you!

Ron & Alexandra - the right relationship will make or break you!

Kristin....it needs to work both ways.   Bummer!

 

 

 

 

Mar 06, 2011 03:23 AM
Kim Boekholder Utah Real Estate/ PECO
Results Real Estate 801.580.5624 - Draper, UT
Broker Results Real Estate/Leasing Specialist PECO

8 years into the business and I've only had one loan officer send me one lead.  Its very very discouraging.  I'm still in search of a relationship that works both ways with a loan officer.  Its fantastic that you help out your agents!

Mar 06, 2011 07:54 AM
Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA

I think it's a two-way street.  I have lenders who give great service & I like to refer my clients to them.  And, some recognize the great service & value we give our clients & do the same.

Mar 06, 2011 01:40 PM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Larry: I agree with you. A great company will emphasize the need for building and maintaining strong relationships. I'm fortunate to work for one. Have a great day and thanks for the post!

Mar 08, 2011 09:05 AM