Real Estate Blog - Do You Really Want My Business?

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Do You Really Want My Business?

This goes out to all those mortgage professionals who have been contacting me in droves the past few weeks. Do you really want my business? Take a Number!! Besides approving MY buyers and helping get MY buyers to the closing table, why has not a single message or email that I have received said anything about how YOU have so many buyers and you're looking for an awesome Realtor to hand YOUR business off to?

Why do you just want to take take take business from me, but you're not prepared to give any back?

The best way to earn MY business is to call or email me and say, "Hey Donna, I've got this buyer looking to buy a house within the next 30 days. I've already pre-approved him and have spoken with him about his payments and he's comfortable in the $200k price range. He's already turned in all his paperwork and I've got an automated approval in front of me. I gave him your name and contact information, so keep an eye or ear out for him. He's ready to go. When you see how smoothly this transaction goes, I look forward to sitting down with you to discuss how WE can continue to reciprocate each other's businesses and grow together."

Why is that so hard for mortgage people to do? Is it because you're not doing your own lead generation? Is it because the Realtors who were supplying you with THEIR buyers are no longer producing like they were and you think just any other Realtor should gladly give you THEIR business?

Oh, and I loved this: "I specialize in conventional, FHA/VA, stated/ALT-A, and small commerical loans." How do you "specialize" in everything? It's ok to do all types of loans and "specialize" in a particular type, but you can't "specialize" in all types of loans, you just work all types of loans, especially when residential and commercial are completely different animals.

I work extremely hard for MY business, and I have spent a lot of time, energy, and money into my lead generation. Why should I give MY business to someone who hasn't proven a thing to me? Why should I give MY business to someone who is so hurting for business right now that they're just calling Realtors they don't even know and are begging for their business?

The lenders that I am currently working with have proven time and time again that we are partners and they reciprocate my business like I reciprocate their business. Maybe you mortgage professionals who have chosen to cold call for business should instead see how you can grow your own lead generation, and then in turn, join forces with a Realtor to swap business with.

Posted by Donna Harris, REALTOR® & ASP - Hill Country Austin Lakeway Homes on 08/15/2008 12:20 PM

Comments (30)

buyer, mortgage professional, business, realtor

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30 Comments on Do You Really Want My Business?

AUG

2008

Right on! The best way to "earn" referrals is to share. The golden rule at work, right?

Bravo! Please stand up and take a bow. You are soooooooo right. We get bombarded by mortgage brokers looking for OUR business. How about sharing some of THEIR business. If they're not generating business to send us then they are just leeches.

Don

http://www.nyhomeseller.com

Share?? I don't think some folks know what this means. I know of some lenders who obviously, because of the fact that they don't send any potential buyers, feel that we Realtors should be thankful just because they financed our buyers. I always get thanks from them when the deal closes or when I give them a call to let them know my buyer will call them for a good faith, but never do they send me anything. Does that mean they don't feel comfortable with my abilities?? Perhaps this is so, but this should still be a two way street. I do believe that working with other professionals that take good care of my clients and do a great job on a regular basis is good, but I also believe in spreading my business and giving everyone a fair shot.

I've noticed that trend as well. Lots of people market themselves to agents - inspectors, banks, handy men and title companies. We even had someone come to our meeting a few months ago to sell us steak knives as closing gifts???

As far as mortage lenders go, I work with a lender that gives as many leads as he receives, so I got pretty lucky there.

I am a Realtor anb Mortgage Broker. I love your post. Sometimes it is the little things that matter. Like you scratch my back and I will scratch yours..

Jason, Yes, thank you!

Don, I think they're leeches. I think they have no idea how to generate their own and they want a free ride because they got in this business during the refi boom and they didn't have to generate business because their phones automatically rang. It's a wake up call to those who have no clue what they're doing. (This does not go towards the ones who are reciprocating)

Scott, Even my 9 month old knows how to share. It's cute. She even does it with a smile. But seriously, I think they're used to the refi boom, and don't know what else to do except get out of the business.

Kristina, I understand that the ones that get buyers and sellers after the fact can't really reciprocate back with approved leads, but those are the ones that can make the transaction work even more smoothly like my title company who makes house callls, or my handyman who can get something fixed with a day's notice. I appreciate those people as they know their service means everything, but the average mortgage person is a dime a dozen, and they should know better.

You said this perfectly. I have been thinking the same thing as I work with lenders. I now am letting them know that the market is tight and if they want my clients they are going to have to share their clients or I will go elsewhere. Their are several great lenders out their, I do not have to stick with just one.

too funny, but I have turned the tables. I have Realtors who called me for my business and I ask them where they were when I got started and needed their help.

btw, great blog, and good job teaching them down there how to do it

O' laawwwwd, Can I get an Amen for Sista Harris!?!?!!?!!?!?!

Laura, Exactly! And I tell mortgage people this at our first meeting, and they say they understand, but instead, they just call over and over again asking, begging for buyers to approve. They don't get it.

Ramona, Just know that you'll have to drill it in them as they don't always hear it. I like to think I've "trained" my current lenders, and I'll have to start over when I move.

Dave, That's great! You got any leads for Dallas or Austin?? I'm raising my hand and jumping up and down for you to pick me!!

Greg, I don't recall telling you I had kareoke at my wedding... how did you get that picture?

Donna - It WOULD be nice if lenders sent more referrals our way. I don't know. Maybe they already have realtors that they are sending their buyers to... :)

Nice, I do think your blog is dead on.

As an originator I struggle continually with "what am I bringing to the table", not only when prospecting for new Realtor partners, but for my established relationships as well. Maybe I am atypical in the sense that I don't get a lot of calls from my data base asking for realtor's; so unfortunately I generally do not have that to open up a relationship - I do agree it is a very effective way.

What I do offer is humility......... I do not expect for a Realtor that has never heard of me or met me to drop down and give me his or her business. However, I do think that (especially in these times) there is nothing wrong with building relationships; I try to do this without expectations. I have started a campaign "let me be your #2", it is based on the premise that having a reliable alternative is a good thing. I do not ask for anything in return, I do offer marketing alternatives, industry updates and friendship; I feel the same way you do "I work extremely hard for MY business, and I have spent a lot of time, energy, and money into my lead generation. Why should I give MYbusiness to someone who hasn't proven a thing to me?".

In my opinion developing relationships takes time, I don't believe that sitting with another Realtor, lender, referral partner is cheating on those already in our circle. I believe a broader vision or a different point of view is healthy. I think that it's best to have an understanding and some kind of a relationship just in case needed; I don't think waiting until you have to find a new mortgage person, closing attorney, appraiser, home inspector, etc is prudent.

I do work consistently on adding value to my services so I have something to bring to the table. I offer marketing pieces, co-branding opportunities, individual home websites, etc. I do not hesitate to send information to my sphere and past clients on behalf of a Realtor partner if it's of value.

I do think it's CRAZY for a mortgage person to "tout" product, pricing, etc. I do believe in my abilities and my companies abilities to execute loans in a professional manner. I do believe that I communicate and take care of my Realtor partners concerns better than many in the industry, but I'm not naive enough to think somebody out there isn't at least as good; healthy competition.

I really do hear and appreciate you're words. It is a tough market and we all need to bring something to the table. Just the same as you trying to distinguish yourself to your clients it is essentail the mortgage people do the same; unfortunately we all don't have buyers to pass out.

I think your passion on this subject is terrific. Anytime I can learn I am excited.

preacher AMEN FOR SISTA HARRIS.

Donna, you could not be more right. I get tired of people banging down my door wanting my business but not wanting to reciprocate. I go by the motto..."YOU MUST GIVE IN ORDER TO RECEIVE". I try to practice what I preach.

Good luck with your move to Austin. I am sure you will be #1 no matter where you do business.

Have a great day

Leander

Debi, If they are already sending their stuff elsewhere and can't provide anything for me, why would I bother? They should be able to divide out the leads like I divide out mine to spread to my different lenders.

Jeff, You're admitting that you don't generate leads. Have you thought about creating an inexpensive website and an inexpensive pay per click campaign? You would be amazed at how much it would help your business.

Leander, My firsy "re-blog". Cool, thanks!

OMG! You are right on! I get emails and phone calls from lenders ALL of the time but none of those contacts is (like you said) here is a pre-approved buyer.

I, as part of the Thornton Team, actually provide an Excel spreadsheet of leads with a minimum of 300 contacts to our real estate partners when we first hook up. The Thornton Team has one main website, but we utilize multiple internet tools to get our name out to generate leads. Additionally, we sent out almost 600 leads to our current Realtor partners last month. What do we expect as a mortgage professionals? Simply, that any of these leads and hopefully a few generated by the Realtors themselves will be closed through us. Is this unreasonable, I don't think so. While there is often a pendulum effect where more of the leads will come from me as the mortgage professional sometimes and other times, more of the leads will come from the Realtors. I am sorry to hear that you are having such a negative experience and being hounded by one way lenders. And no, I am not asking, and certainly not begging, for your business as we do not do loans in Texas...yet. This is not any type of sales pitch, I just wanted to give you another perspective. BTW, we also refer to credit counselors those loans we cannot do because of credit issues. We hope that the credit counselors can get the borrower into a better place where we can then help the potential client. It then becomes a referral to the Realtor. You see we refer to multiple sources, in multiple disciplines. And I have actually received one (1) original referral (not someone I referred to the counselor) from a credit counselor. Sorry for going on and on. And I do realize you were addressing your comments to non-referring professionals across all spectrums of the real estate industry.

Oh yes, I am admitting that. Funny thing is, I spend a fair amount of $$ on marketing. I market to my data base (225) monthly; creative stuff to not just postcards. I have individual websites for listings that I provide. I have a 12 month post closing campaign that turns into a client for life campaign. I provide co-branded open house flyers etc. I think the thing is, my data base is from my community where most people just stay put. My past client data base is limited, I've been in the business for 8 years, but I came into not knowing about data base management working for an internet lender. I have only been building my business for approximately 2 yrs, so the repeat business isn't there yet.

I do have a website, not sure about the pay per click, but will investigate; if you care to expand on this I would appreciate it. I have tried (on a limited scale) the FSBO community hoping to create leads from that.

I am currently doing a lot of REO, bank owned, renovation type deals too. I am in the process of building a campaign to generate leads from people interested in these properties. I am going to "toss a castnet" - I think. I am in the process of contacting my realtor base to determine who is interested in working this type of transaction. I want to offer sort of a one stop shop - i.e. I hope to have a handful of realtors that know where the deals are. When I have a client looking for this type of property I will send the lead, they show the property client accepts the deal and we'll/I take care of the rest.

thank you for your reply, I really appreciate your candor.

Oh My!! You are sooooooo Right! I have had the same feelings and have gone as far as to share my feelings with these cold calling lenders. I just tell them, go ahead and send me a qualified buyer and you will certainly get to close the loan, because I will sell them a house! Yes, let's do business. As soon as I see how you handle the loan process with one of your buyer leads, then I may feel comfortable enough to return the favor and send you one of my buyers. I am not going to just randomly refer my clients to some lender with whom I have never worked with and hope that the process is smooth and risk my entire transaction and hard work and hours and hours of showing property and not know if you can get it done, when I have great relationships with Fantastic lenders who also refer buyers and sellers to me. PERIOD, THE END!

Donna, My husband and I were just talking about this earlier today... you are right on target.

David and Debbie, Thanks for stopping by!

Brittney, I've tried that and most don't understand what that means even when I speak in 2nd grade language. Good luck with that!

Jeff, PPC is another time and place, or do a search on the site as many people talk PPC. If you want a website that generate lead after lead after lead, let me know and I'll hook you up with who did my site. I got more leads in the first month than I did in 7 previous years with my old site that I created myself. Other than that, it sounds like you do a lot to your past clients, but that is for future, repeat business, not necessarily prospecting for today's business. You've got your eggs in many different baskets, which is good to an extent, but are you keeping track of what's actually working and what's not? Don't throw good money after bad.

Rich, I understand you're sending "leads", but are you sending any buyers that are already approved and ready to go? Have you spoken to any of these "leads" before? In a way, I guess it's good that as an agent, they're getting free leads, but I would never just give a list of leads to a mortgage person and say here are my leads, where are mine. A lead is a lead, but usually, when I give a name to a mortgage person, I've already spoken to or emailed with them, and they're more than a "lead" at that time, even if they don't end up buying. They're a warm body, not cold.

Donna - I read you posts all the time and I do not recall this coming up before. Perhaps you have been getting a lot of calls lately ?? lol You are right. I was in the same boat as Jeff before I started generating leads. I dont have the leads that most Realtors have, but that is okay I offer much more than just giving a realtor leads. The biggest issue with mortgage professionals is getting your foot in the door. Most GOOD agents have a mortgage professional they work with. Someone they can rely on. Jeff touched on it. Be the 2nd guy in case #1 quits the business, goes on vacation, has a baby, etc. You touched on another big part though which is to bring something to the table. You cant just ask for business without proving yourself OR bring a client to the table (as you stated). In this transaction, we both have a lot to lose... money. You have to go with someone you trust and you know can get the job done.

Thanks for the post!

Jeff - I agree with Donna. It sounds like you have a LOT to offer and I would also suggest that you narrow down your niche. Perhaps you don't need my advice, but you will find that it is much easier to be an EXPERT in one area than be someone that 'dabbles' in many different things. Your service before and after the same should a given or else you won't succeed anyway (you probably realize that already). Being an expert in one area or another gives you that little bit extra that your competition does not have. Sure, you will lose on some business but in the end you will be much more successful because you will be known for the guy who hands 'x type' of products. Jeff Belonger for example is known as an FHA expert. Im sure he knows Conventional and maybe even VA, but he focuses his attention on FHA products in New Jersey. Be an expert in something. Oh yeah, and Blogging helps you quite a bit. Blog and let people see you know what you are talking about. Whether you have leads or not, a good agent will be able to see your knowledge from your writing and that itself will drum up business.

** sorry Donna for the long comment **

Much success to both of you.

AUG

2008

John,

Thanks for the advice, this kind of stuff is why I started "blogging".

Have a great day,

I got an email this morning from one of the mortgage people from last week and part of his response was that he didn't read my blog. Huh? He also disagrees with sharing leads. He's not going to make it very far or long in this business.

Way to spell it out!! Love this. You are sooo right.

Lots of comments saying the same thing-agreeing with you. Noticed many comments about giving business to lenders but very little reciprocation. That's the way it's been for me too. I give out 2 or 3 names and let the buyers choose, and/or contact all three. Still I get very few leads from any of them. Maybe I need to look for new lenders.

Sharon, Thanks!

Angie, Yes, I would look into new lenders if I were you. You should work with people who view you as a partner, not their meal ticket.

AUG

2008

Angie,

I think you hit a bullseye, you gave 2 or 3 names; that doesnt' sound like a real solid endorsement. Perhaps your lender(s) is giving two or three names too?

I do think reciprocating leads is awesome. I see that through this blog, it seems like providing all types of marketing materials, call capture signs, customer service, hard work, answering phones on weekends and never losing a deal even in these difficult times might not be enough.

As I stated early on, I do not have a lot of leads to reciprocate (I am working on that now), but when I have had them I send them to 1 Realtor not 2 or 3. I have a feel for what the client is looking for and try to marry them to the best fit for their needs and client profile. As many of the Realtors have stated about mortgage professionals - what makes you better than the next person - are you truly the best Realtor in your area??

I go back to one of my earlier comments - without a personal relationship it's hard to characterize one professional from another. Today I had two deals sent to me $36.900 and $26,900 (my average loan size has been $272k) did I treat these any different for my Realtor partner - NO. I understand everyone is working hard.

What I do pride myself on is I communicate with my realtor partners. when they need someone to sit at an open house I'm there. When they ask for me to work a carravan, I'm there. When they need me to find a way to finance a $26k loan I'm there.

The point is, I grew up in a family where relationships, hard work and having a strong character meant something. I was never taught that you had to buy your way into anything. It's funny how this blog has brought out some, what I see as, pretty nasty comments. There are good Realtors and there are good mortgage professionals. We all need each other to do our jobs if you can sell it I hope you have a quality mortgage professional who can finance it.

I hope this isn't taken in the wrong way. I really have enjoyed this blog. It has taught me a few things - I just can't believe the adversarily relationship there seems to be in this business.

Hi Donna. I remember you from housevalues few years ago as you posted a lot there, great stuff too! are you still with them? i gave it up when i realized the lead quality/cost ratio around here was horrible (Los Gatos, Ca-Silicon Valley-high end market = expensive HV leads!).

So this is a great post on lenders. Any thoughts on co-op marketing with lenders who you want to work with but don't generate a lot of unattached buyer or seller leads to refer back to us? I've made a pitch or two to ad-share with our lenders but working out the details is a major pain it seems.

Lastly, you mentioned to Jeff Glick he should get an inexpensivek website and do lots of PPC. Any suggestions of vendors/budgets on that? I'm handling web marketing for high-end team and am desperately trying to double or triple our lead generation both online and offline. Any help would be appreciated!

Hope to return the favor/info sharing if I can. [new to AR]

Jeff McLaughlin

SEP

2008

I've been wanted to say this to mortgage guys for the last 5 years. Right on! I have read a few of your posts recently and I love that you just say what is on my mind, but I'm to chicken to say it.

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