I was fortunate enough to have the opportunity to listen to Greg Swann of Bloodhound Realty.com, and Brian Brady of World Wide Wealth Advisors, deliver a short presentation last Friday for Mortgage Brokers and Bankers regarding Web 2.0 and Social Media Marketing. The event was hosted by Chicago Title through their Phoenix branch. I can tell you that I was intrigued by the ideas and held captive by their willingness to share what they have found to be successful in their business.
I learned many different tips, ideas, and techniques that I hope to use in my Social Media Marketing and Weblog. There was one part of Brian’s presentation that stuck with me and of course it had to do with numbers. (Since I am a numbers guy which further has to do with my organizational and pattern personality it naturally stuck) The final number was 1200. Based on a previous book he had read, “The Millionaire Real Estate Agent”, he gleaned the basic principle of the amount of people in your database directly reflects the amount of business you will do. This concept isn’t new to me but at this time I felt it stick, mostly due to the way it further broke down. As he was continuing his presentation we began talking about prospecting and finding new leads. The basic idea was that if you aren’t prospecting 2-3 hours a day and talking to at least 10 new people a day, then you aren’t really selling.
So I got to thinking and those numbers were dancing around in my head and the idea that if I wasn’t prospecting daily, conjuring up leads, and meeting new people, then I wasn’t selling (which means I am not doing my job) started to eat at me. A little background for you: I have always wanted to know as many people as possible. I love meeting new people, not sure why, but I feel they have interesting stories and each person has something to tell. People’s stories fascinate me and the way we think about situations, handle pressure, and deal with problems individually makes us all so unique. However, I do know that I have a draw back…call it past history, grade school insecurities, etc…I don’t know if people will enjoy meeting me. I am not sure if what I have to offer is really all that unique and so it binds me from starting conversations in person or on the phone. Truthfully, I get a bit tongue tied, don’t know what to ask, hate the introductory part, and when making cold calls generally feel like I am ruining the person on the other end of the phone’s day.
But that thinking isn’t conducive to helping me become a productive Loan Officer, which became even more clear when I read this blog from Jeff Brown, “#1 Myth in Real Estate: Agents Don’t Know Why They’re Failing”. I know it is directed towards Real estate agents but it really is for all people from Pharmaceutical Sales Reps to Loan Officers to Stock Brokers and everything in between. I know I want to be productive, I want to be the top producing loan officer in my office and I want to meet as many people as possible. I believe I can do that by meeting 10 new people a day and prospecting relentlessly.
The process can seem overwhelming if you look at the end result (having 1200 people in your database) but when broken down to meeting or talking with 10 new people a day it isn’t that daunting of a task. It is just determination, grit, and honestly looking at what we do daily that will take us to the end of the road.
Let me put it to you this way:
10 people /day x 5 days/week x 52 weeks/year = 2600 new contacts in 1 calendar year.
Those are huge numbers and not all will make it to your database but if you capture half of that then you will have affected more people through your work and personality than you could think possible in one year.
I have challenged myself to reaching this single goal. I don’t care about how many deals I close this month or next month. I just want to meet people to learn what they do and to hopefully have them know what I do so if we are ever in need in either direction (they need me or I need them) the connection will be there.
This will be my: 10-A-Day Campaign.
If you are in the sales profession in any line of work and are interested in joining this campaign, email me at emurrietta@silverstatebank.com and let’s get started.
Showing posts with label Loans. Show all posts
Showing posts with label Loans. Show all posts
Tuesday, May 13, 2008
Thursday, April 17, 2008
Analyzing Self-Employed Borrowers
The great American Dream, outside of owning your own home, is probably running your own business...at least for some. The freedom that comes with watching something grow, setting your own hours, working for your self and working hard is in itself satisfying. But with anything there are positives and negatives and with the many positives comes a negative in the underwriting world of lenders.
Fact of the Times = If it isn't on paper then it can't be counted.
The lending world has reverted back to its pre "lend money to anyone" phase. Investors are being selective in the loans they want to purchase and in turn underwriters are having to explain and underwrite files with no holes. The days of Stated Income/Stated Asset for a wage earner are gone and it will be a long time before those programs return. The only harm is that the SISA program for Self-employed or 1099 borrowers with excellent credit has dried up as well. This is harmful for two reasons...
1) Self-Employed/Small Business Owners account for 18.6 million in the U.S. (See link. --Statistic from 2003, however one could assume the numbers have and will continue to increase)
2) Self-Employed borrowers accounted for 44% of all loans closed in 2006.
This means that as the numbers of self-employed borrowers increases, those persons are going to be in need of mortgages. If they can't get a mortgage due to the structure of their business and taxes, it is going to be difficult for these borrowers to qualify for homes and "move-up" in the housing market. If they can't move up, then they won't sell their home and the market will continue at a stand still. It will be important to begin seeing the programs return for Stated Income Self Employed borrowers in order to refinance them and get them into new homes.
The truth is there are many different variables affecting the current market and the above is just a piece of the puzzle. Self-employed borrowers can take the following steps to prepare their finances in order to present a full, clean documentation file to a lender:
1) Showing two or more years of Self-Employment history.
2) Owning 25% or more of the business
3) A strong two year average of income.
4) No significant decline in your busines income.
5) Lenders may require; Business License, Personal Financial/Corporate Financial Statement, 2 Years Tax Returns (personal and business), etc.
It is important to have your financial information in order when applying for a mortgage to insure that they underwriter can get complete information and file on you. It is possible to get a mortgage, it just may be a bit more of an exhaustive process.
See article "Chasm Grows between Home Lenders and Self Employed." for related information.
Fact of the Times = If it isn't on paper then it can't be counted.
The lending world has reverted back to its pre "lend money to anyone" phase. Investors are being selective in the loans they want to purchase and in turn underwriters are having to explain and underwrite files with no holes. The days of Stated Income/Stated Asset for a wage earner are gone and it will be a long time before those programs return. The only harm is that the SISA program for Self-employed or 1099 borrowers with excellent credit has dried up as well. This is harmful for two reasons...
1) Self-Employed/Small Business Owners account for 18.6 million in the U.S. (See link. --Statistic from 2003, however one could assume the numbers have and will continue to increase)
2) Self-Employed borrowers accounted for 44% of all loans closed in 2006.
This means that as the numbers of self-employed borrowers increases, those persons are going to be in need of mortgages. If they can't get a mortgage due to the structure of their business and taxes, it is going to be difficult for these borrowers to qualify for homes and "move-up" in the housing market. If they can't move up, then they won't sell their home and the market will continue at a stand still. It will be important to begin seeing the programs return for Stated Income Self Employed borrowers in order to refinance them and get them into new homes.
The truth is there are many different variables affecting the current market and the above is just a piece of the puzzle. Self-employed borrowers can take the following steps to prepare their finances in order to present a full, clean documentation file to a lender:
1) Showing two or more years of Self-Employment history.
2) Owning 25% or more of the business
3) A strong two year average of income.
4) No significant decline in your busines income.
5) Lenders may require; Business License, Personal Financial/Corporate Financial Statement, 2 Years Tax Returns (personal and business), etc.
It is important to have your financial information in order when applying for a mortgage to insure that they underwriter can get complete information and file on you. It is possible to get a mortgage, it just may be a bit more of an exhaustive process.
See article "Chasm Grows between Home Lenders and Self Employed." for related information.
Friday, April 4, 2008
A New Name: Choice Bank and Silver State Bank Merger Complete
On April 1, 2008, the merger between Choice Bank and Silver State Bank was successful. This has been, for me, an exciting week with new possibilities and a positive outlook for the future. It is early in the process and the changes mostly involve processing and internal issues. However, the new name comes with it a hope for newer and more efficient systems and tactics that will ensure the success and dreams of the original Choice Bank founders are reached.
In life we dream of growing and changing, making ourselves better each and every day. In this merger we have done just that. Choice Bank has the increased capacity to market effectively, to expand further, to reach a new and exciting audience, and to stand up as a community bank with strength, power, and the desire to meet each customer's needs. It is a new day for Silver State Bank. I am lucky and proud to be a part of the growth in the valley over the next few years. If you don't know of us yet...you will know of us soon.
On to the week in the Mortgage Industry. Rates were up and down this week, which followed the pattern of the Stock Market. They are very consistent at week's end with last weeks rates. Investor options for us, as brokers, have come and gone and the ability to be involved with heavy hitters in the construction industry is increasing. Sometimes overnight, products that were once available are removed and it leaves a bumpy wake in its path. However, it keeps us on our toes as originators and forces us to continue to evolve.
List of Current and Upcoming Trends in the Mortgage Industry
In life we dream of growing and changing, making ourselves better each and every day. In this merger we have done just that. Choice Bank has the increased capacity to market effectively, to expand further, to reach a new and exciting audience, and to stand up as a community bank with strength, power, and the desire to meet each customer's needs. It is a new day for Silver State Bank. I am lucky and proud to be a part of the growth in the valley over the next few years. If you don't know of us yet...you will know of us soon.
On to the week in the Mortgage Industry. Rates were up and down this week, which followed the pattern of the Stock Market. They are very consistent at week's end with last weeks rates. Investor options for us, as brokers, have come and gone and the ability to be involved with heavy hitters in the construction industry is increasing. Sometimes overnight, products that were once available are removed and it leaves a bumpy wake in its path. However, it keeps us on our toes as originators and forces us to continue to evolve.
List of Current and Upcoming Trends in the Mortgage Industry
- FHA and VA Loans - the way to go for low down payment and Down Payment Assistance programs.
- Longer and more heavily scrutinized underwriting by all investors.
- Rates are going to be soon be tied to credit score. Great Credit Score = Better Rate and vice versa.
- More activity from buyers (Pre-qual activity up)
- Rates may continue to increase overall. See article on Bankrate.com for more information.
Stay tuned for more information. Call me with any questions. Make it a great Friday and have a fantastic weekend.
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You can find great local Scottsdale, Arizona real estate information on Localism.com Eric Murrietta is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.