I had a great question come to me today:
Carl, how can you do loans in this market if the value of homes have gone down so much? Lenders will not approve loans unless the LTV's are really low and it's full doc.
I have several points to make here. I don't intend on being rude, but I am going to slap you to try to wake you up. Your car is getting ready to run off of the cliff..... if it hasn't already.
1. So are you saying that 97% LTVs for FHA and 95% LTVs for conventional are "really low"? Yes, the 103% financing days are gone for the most part. Yes, your client will need 3% or 5% down. so market only to people that have 3 - 5% down.
2. With the home values dropping, that actually helps the financing for the purchase markets. Homes are more affordable now than they have been in years.
3. With the full doc issue... yes, you actually have to find borrowers that have a job.
Now, if you are trying to market to refi's that bought at 100% LTV in the last 2 years, and they opened up their own business 6 weeks ago..... stop marketing to them.
It sounds like you are trying to sell albums to a group looking to buy IPODs.
The market has changed, so change your marketing!!!!
If you are doing the same marketing that we were all doing last year, you are destined to fail.
Our mastermind group has thrown all those old mailers, all those old mailing lists, all those old scripts, and all the other stuff.... and threw it out with the rest of Grand Pa's stuff.
It's time to wake up and rethink your marketing. Find out what is closing, what the successful loan officers are doing, and then copy them. Don't copy the ones that haven't been to the closing table lately.
Instead of focusing on what doesn't work, start looking at what does!!
Carl
Monday, September 29, 2008
Sunday, September 28, 2008
Could This Be The Cause Of Your Slow Down
Just about all of the loan officers and Realtors I know make things much too complicated. So many put money in the wrong parts of their company. And they ignore the matters that are the most significant and produce the most income.
They print and mail a few letters to people they know. And they sit back. At that stage, they learn that their friends or family have gotten three or four letters each month from other realtors and loan officers.
So they pick up the phone and call these friends to request work, but they are turned down over and over.
They begin attending the network meetings - breakfasts, lunches and dinners. They become addicted to networking, wandering from one gathering to the next, watching their bank balance go down and getting more and more panicked. They figure out that everyone else in the networking groups already know other realtors and loan officers who also attend networking groups.
Perhaps they buy advertising space or place their photos in prime locations -- that must be it!
It will definitely be successful . . .yes?
Sure, they can do this with NO training on how to market in an ad or a billboard.
How do they learn the steps to take?
They just imitate the failed methods of other unsuccessful real estate agents and loan officers!
They are completely mistaken.
Take note: only two percent of loan officers and realtors are supporting themselves... do you really want to pattern your business after the other ninety-eight percent who do not know how to market? NO WAY.
If you want to get ahead in marketing and advertising, you need to follow some ground-level concepts that are true of every business that exists.
I count myself blessed to have gotten lessons from the top people in my field, people who produce multi-millions for their business.
Interestingly, true millionaires have such a drive that even if stripped of their financial assets, in three years time they could return, more wealthy and successful than ever.
In what way?
You must first grasp the basics and apply the concepts in your own business strategies. It is proven. This idea has certainly worked for me, and not just me, but everybody I know who has tried to apply it has been successful.
So, what would I do if I was wanting to do a "make over" with my real estate business and / or mortgage business?
Step one: I'd go to some getaway at a hotel or retreat center where I could work for two solid days with nothing at all to distract me. If these two days make you more money than anything else, then they're worth making time for.
Photos of your loved ones, and/or photos of your dream future, including cars, homes, travel destinations, relationships, kids, pictures that remind you of freedeom, or passion and of your entrepreneurial dream, along with reams of paper, a laptop, and lots of pens are things I would suggest you bring with you.
After that, I'd take the paper and start journaling my answers to some very serious questions.
For example, what am I in this for? What are the rewards when I reach my goal? These can be financial or other kinds of goals.
Put these thoughts on paper.
Why did I get into this field? How much longer do I want to be doing this job? After I make it to my number one goal, what do I want next (to retire, give to charity, see the world, found another business, etc)? What are you willing to give up to be successful? Is there anything I won't do to accomplish those dreams? How do I stand out from other people?
Put your strengths and weaknesses on paper. Make a note of things from your past: employment, significant highlights, failures, and triumphs.
Write down what makes you stand out from the crowd? What are your best qualities?
People in business and society who have a grand vision on who they are now and who they want to be, as silly as it may sound, are the most successful people. Every single thing they get involved in is moving them towards their main goal.
What are you very good at? What are you really bad at doing? How much do you think you should be making?
Run the numbers. On a piece of paper, put down your desired annual income. Then take into account, because this is simply a fact, that less than half your working time will actually generate money for you. Next, figure out what you get paid for an hour of work. THIS REALLY MATTERS.
What would you love to do or be if money was not a concern? Considering this opens your mind to what must be done and what must be changed, although this number has never been calculated by most people. Who would you spend your time with? How would you spend your time outside of work?
The main point is: Money doesn't matter. Put it on paper.
Look 30 years into the future. You arise from a deep sleep to find out that you are present at your own funeral. Who is going to speak about you at your memorial service? What do you want them to say about you? Write out what you would like the preacher to say about you at your funeral. (Although difficult, this exercise can really demonstrate the upside opportunity).
We could discuss this topic for hours, but we have plenty to get started on.
There is one example of a realtor who promotes herself as "The Pet Lovers Realtor". Although she works in a city of a million, she is the only realtor who promotes herself as an animal lover.
She accomplishes this by photographing herself with her canine friends, advertising in pet magazines, and taking out ads in parenting magazines that display both her and her dog.
She understands . . .4,999 other people do not!
Another realtor goes broke because they are far too sold into the cult mentality of sameness of realtors and on goes the story when I tell other realtors about this, and watch their eyes glaze over with disgust as they remark "I want to sell to everyone, NOT only pet lovers!"
Are you following your competition too closely? Do you believe that everyone must act alike, dress alike, and market themselves just like everyone else without any choice? If so it's time to find fresh blood with new ideas. Yes, this DOES apply to your business too.
Take note: starting a successful business and keeping it going can't be done in a day. You've got to understand success, financial savvy, the winning mindset, achieving, marketing, writing ads, managing, planning your time, etc.
You can't possibly know everything, and you must continue to spend time and money getting educated. Traditional education is helpful, but to find true success you need to look further.
Those who are out there doing it in the real world - not reading about it in a textbook and regurgitaing their untested theories to a classroom full of students are where a true success education comes from. (Few, if any, are the number of professors working in colleges or universities that are successful financially.)
It is important to observe those that have already found success. Don't worry about what field they are in, either. Find out how they think, how they view the world, how they promote their services. The only place to get that kind of learning is outside the classroom.
For myself, tens of thousands of dollars each year goes into my own continuing education. When I pay $5000 for a seminar or $2500 for a one day one on one training, the only thing I want from it is ONE BIG IDEA I can use for my personal or business life. A single idea can do the job and make my money back many times over.
I have recently invested $2,000 to attend a "How To Do Webinars" seminar.
Many people react to this by saying it is too expensive for two days, refusing to participate. Even others who paid for the event may not have approached it the same way I did. Just this year, I came up with one brand new concept that is going to triple my productivity and my take-home pay.
However, I have been in seminars where sitting in the next row was a husband/wife partnership who had nothing to say but bad things the entire time. You name it and they had a complaint about it...from the room being too cold, to the chairs too hard, the exercise didn't make sense to their industry, and even the paper being too thin.
An attitude such as that one would likely leave someone with a negative experience, and they would take nothing away from the exercise.
At the same time, people such as myself understand it and will proceed to make hundreds of thousands, possibly even millions of dollars from the idea that others overlooked.
So focus in on this and get ready to learn about the one-big-idea concept. This single trait illustrates the difference between those who succeed and those who do not.
As soon as you know the responses to these inquiries, you are set to embark on a marketing effort that will really get results.
Simplifying Your Marketing.
The fact that effective marketing is MUCH simpler than non-effective (typical) marketing is something you need to get your head wrapped around.
Yes, you must master the basics, but once you do that and put them into practice, all that remains is to test and measure and get ready for success. Until when? I wish I could know. If you work hard and apply what you are learning, it could come to pass within 1-3 months. You won't become a millionaire overnight, but you can create the methods that will make you a millionaire one day.
At its core, success is about correctly implementing the blueprints and templates that are proven.
They print and mail a few letters to people they know. And they sit back. At that stage, they learn that their friends or family have gotten three or four letters each month from other realtors and loan officers.
So they pick up the phone and call these friends to request work, but they are turned down over and over.
They begin attending the network meetings - breakfasts, lunches and dinners. They become addicted to networking, wandering from one gathering to the next, watching their bank balance go down and getting more and more panicked. They figure out that everyone else in the networking groups already know other realtors and loan officers who also attend networking groups.
Perhaps they buy advertising space or place their photos in prime locations -- that must be it!
It will definitely be successful . . .yes?
Sure, they can do this with NO training on how to market in an ad or a billboard.
How do they learn the steps to take?
They just imitate the failed methods of other unsuccessful real estate agents and loan officers!
They are completely mistaken.
Take note: only two percent of loan officers and realtors are supporting themselves... do you really want to pattern your business after the other ninety-eight percent who do not know how to market? NO WAY.
If you want to get ahead in marketing and advertising, you need to follow some ground-level concepts that are true of every business that exists.
I count myself blessed to have gotten lessons from the top people in my field, people who produce multi-millions for their business.
Interestingly, true millionaires have such a drive that even if stripped of their financial assets, in three years time they could return, more wealthy and successful than ever.
In what way?
You must first grasp the basics and apply the concepts in your own business strategies. It is proven. This idea has certainly worked for me, and not just me, but everybody I know who has tried to apply it has been successful.
So, what would I do if I was wanting to do a "make over" with my real estate business and / or mortgage business?
Step one: I'd go to some getaway at a hotel or retreat center where I could work for two solid days with nothing at all to distract me. If these two days make you more money than anything else, then they're worth making time for.
Photos of your loved ones, and/or photos of your dream future, including cars, homes, travel destinations, relationships, kids, pictures that remind you of freedeom, or passion and of your entrepreneurial dream, along with reams of paper, a laptop, and lots of pens are things I would suggest you bring with you.
After that, I'd take the paper and start journaling my answers to some very serious questions.
For example, what am I in this for? What are the rewards when I reach my goal? These can be financial or other kinds of goals.
Put these thoughts on paper.
Why did I get into this field? How much longer do I want to be doing this job? After I make it to my number one goal, what do I want next (to retire, give to charity, see the world, found another business, etc)? What are you willing to give up to be successful? Is there anything I won't do to accomplish those dreams? How do I stand out from other people?
Put your strengths and weaknesses on paper. Make a note of things from your past: employment, significant highlights, failures, and triumphs.
Write down what makes you stand out from the crowd? What are your best qualities?
People in business and society who have a grand vision on who they are now and who they want to be, as silly as it may sound, are the most successful people. Every single thing they get involved in is moving them towards their main goal.
What are you very good at? What are you really bad at doing? How much do you think you should be making?
Run the numbers. On a piece of paper, put down your desired annual income. Then take into account, because this is simply a fact, that less than half your working time will actually generate money for you. Next, figure out what you get paid for an hour of work. THIS REALLY MATTERS.
What would you love to do or be if money was not a concern? Considering this opens your mind to what must be done and what must be changed, although this number has never been calculated by most people. Who would you spend your time with? How would you spend your time outside of work?
The main point is: Money doesn't matter. Put it on paper.
Look 30 years into the future. You arise from a deep sleep to find out that you are present at your own funeral. Who is going to speak about you at your memorial service? What do you want them to say about you? Write out what you would like the preacher to say about you at your funeral. (Although difficult, this exercise can really demonstrate the upside opportunity).
We could discuss this topic for hours, but we have plenty to get started on.
There is one example of a realtor who promotes herself as "The Pet Lovers Realtor". Although she works in a city of a million, she is the only realtor who promotes herself as an animal lover.
She accomplishes this by photographing herself with her canine friends, advertising in pet magazines, and taking out ads in parenting magazines that display both her and her dog.
She understands . . .4,999 other people do not!
Another realtor goes broke because they are far too sold into the cult mentality of sameness of realtors and on goes the story when I tell other realtors about this, and watch their eyes glaze over with disgust as they remark "I want to sell to everyone, NOT only pet lovers!"
Are you following your competition too closely? Do you believe that everyone must act alike, dress alike, and market themselves just like everyone else without any choice? If so it's time to find fresh blood with new ideas. Yes, this DOES apply to your business too.
Take note: starting a successful business and keeping it going can't be done in a day. You've got to understand success, financial savvy, the winning mindset, achieving, marketing, writing ads, managing, planning your time, etc.
You can't possibly know everything, and you must continue to spend time and money getting educated. Traditional education is helpful, but to find true success you need to look further.
Those who are out there doing it in the real world - not reading about it in a textbook and regurgitaing their untested theories to a classroom full of students are where a true success education comes from. (Few, if any, are the number of professors working in colleges or universities that are successful financially.)
It is important to observe those that have already found success. Don't worry about what field they are in, either. Find out how they think, how they view the world, how they promote their services. The only place to get that kind of learning is outside the classroom.
For myself, tens of thousands of dollars each year goes into my own continuing education. When I pay $5000 for a seminar or $2500 for a one day one on one training, the only thing I want from it is ONE BIG IDEA I can use for my personal or business life. A single idea can do the job and make my money back many times over.
I have recently invested $2,000 to attend a "How To Do Webinars" seminar.
Many people react to this by saying it is too expensive for two days, refusing to participate. Even others who paid for the event may not have approached it the same way I did. Just this year, I came up with one brand new concept that is going to triple my productivity and my take-home pay.
However, I have been in seminars where sitting in the next row was a husband/wife partnership who had nothing to say but bad things the entire time. You name it and they had a complaint about it...from the room being too cold, to the chairs too hard, the exercise didn't make sense to their industry, and even the paper being too thin.
An attitude such as that one would likely leave someone with a negative experience, and they would take nothing away from the exercise.
At the same time, people such as myself understand it and will proceed to make hundreds of thousands, possibly even millions of dollars from the idea that others overlooked.
So focus in on this and get ready to learn about the one-big-idea concept. This single trait illustrates the difference between those who succeed and those who do not.
As soon as you know the responses to these inquiries, you are set to embark on a marketing effort that will really get results.
Simplifying Your Marketing.
The fact that effective marketing is MUCH simpler than non-effective (typical) marketing is something you need to get your head wrapped around.
Yes, you must master the basics, but once you do that and put them into practice, all that remains is to test and measure and get ready for success. Until when? I wish I could know. If you work hard and apply what you are learning, it could come to pass within 1-3 months. You won't become a millionaire overnight, but you can create the methods that will make you a millionaire one day.
At its core, success is about correctly implementing the blueprints and templates that are proven.
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