What you are about to read is really painful. But it is the reality in the marketplace right now. It came to me this morning from a loyal subscriber and I couldn’t let it pass w/o putting in my 2 cents. I hope you’ll leave your 2 cents as well at the bottom.
( YOU MIGHT WANT TO PRINT THIS ONE)
HERE’S THE E-MAIL - THEN SEE MY COMMENTS AND LEAVE YOURS!
You are so right on target with everything you say. Especially these so called experts out there that are teaching others but never were able to actually do the deed them selves, on of them is a very good friend of mine that I have known since high school. He made some money in the boom years of 1991, 1992, and up until October of 1993, BIG DEAL! All you had to do back then was put a tiny little ad in the local news paper and your phone would ring like crazy with people wanting to do refinances. A ONCE IN A LIFETIME EVENT DOES NOT AN EXPERT MAKE!
However, when I listen to you, I know that you have been there. I equate it to almost like shell shock that a soldier goes through in a way. Business in many ways is like war and there are many walking wounded right now from Loan Officers to Realtors alike. We have lost everything from our material possessions but more importantly our self respect.
I know it shouldn’t be this way but they way I feel about myself as a person is directly proportionate to the success I am or am not having in business. The measure of that success is my bank account. I have lost my pristine credit rating, my savings, my retirement money, my ability to take care of my family here and over sea’s, the awe of my family who used to think I was some kind of infallible superstar. I haven’t lost my home yet (Thank God) but at one point I was 90 days late but am current again on my mortgage. My wife has had to take a job as a maid at an upscale hotel for $10.00 to help make ends meet. She is only 105 lbs and the cleaning cart she has to push around weighs more than her. She comes home so stiff and sour but rarely complains. She is a Filapina and it’s not in her culture to complain. She is a beautiful women but having to work this hard is taking its toll on her looks. I feel so damned guilty….I have to do something.
I am a member of the loan tool box and they have all these bright shiny marketing plans and what not but not the step by step process you need to do to succeed. I am really freaking here Brian and I am just thankful there is someone like you I can listen to once in a while if for no other reason than to just see that there is a way to succeed….you made it. My goal is to somehow be able to save enough money to enroll in your coaching. This pick a niche and be an expert at it is a great idea. What do you think of being an expert in the foreclosure market? Also, there are all these classes for sale for big dollars to show you how to purchase these properties using other peoples money and then to sell them to somebody without ever holding title. To me these sound like B.S. as I can think of all kind of problems to over come. Any thoughts?
Thanks for being there!
Sincerely,
Steven B.
MY THOUGHTS AND COMMENTS
THere are a ton of FAKE /PRETEND EXPERTS out there right now that are just hoping to feed on our desperation to make a few bucks– To me that’s pretty slimy and it’s exactly why I decided to put the www.loanofficerformula.com/join together-
BIG MAREKTING LESSON !!! BIG MARKETING LESSON !!!! BIG MARKETING LESSON!!!
See what Steve says about knowing that I have been there and have the scars to prove it. That is the big lesson- Use that same concept with your clients.. Instead of telling them about all the great products you offer and blah blah blah blah — tell them your story. It will absolutely increase your sales since they will now feel like they are workign with someone who understands them.
HERE ARE 2 EXAMPLES
When I worked in the bankruptcy niche I would explain in my sales letters and reports that I understand what it feels like to sit in front of a bankruptcy attorney. Staying up late at night watching in desperation for get rich quick idea so I could get back to even.
The weight of the world on your shoulders not knowing how you can ever get out of this horrible situation that really wasn’t your fault…
I have watched really good people like you and me have unfortunate circumstances beyond their control and be forced into bankruptcy. They are then shunned by most lenders or ripped off and forced to pay outageous rates and points.
That’s why I have dedicated myself to letting people like you and me with a credit challange know that you CAN get into a home with attractive rates and very little down EVEN IF YOU HAVE HAD A BANKRUPTCY OR OTHER CREDIT CHALLANGE!
When dealing with Reverses- While I am not a senior myself I am an only child with parents who did plan well for their retirement - All they had was a home and a small savings account with a few thousand dollars in it — and 900 a month between them in social security- They worked hard all of those years and are not able to enjoy their golden years.
So I have dedicated myself to helping seniors in a similar circumstance take adavantage of the Government Program designed to help seniors enjoy life and get rid of that horrible financial stress.
SEE HOW POWERFUL THIS CAN BE ? Start using it in your marketing if it’s true— never ever fake it though cause people will see right thru you !
Now let’s talk about the rest of this painful story…
STEVE - You should be commended for hanging in there! It’s very easy to get down and depressed especially given all we have been through over the past 24 months. BUT I can tell from your e-mail and the fact that you are still in the business that you will survive.
I have been in the same place myself many times over the last 25 years of booms and major busts! This one however is a doozy! But the good news is that there are many ways to take advantage of this marketplace.
MANY FEEL PARALYZED and I guess that is normal since we are all just flesh and blood- It will do you NO GOOD to just think positively. You can say things will be allright all day long BUT YOU MUST DO SOMETHING ABOUT IT!
I have always fallen back to “PICK A NICHE- BECOME THE EXPERT- LET EVERYONE KNOW ABOUT IT.
A great niche- possibly the best niche ever is REVERSE MORTGAGES. THere are 75 million people right now who are eligible and over 5000 more created each and every day . It’s the type of niche that careers can be built off of.
In the formula we just added over 8 hours of training on REVERSES- Not just the nuts and bolts of the deals but more importantly — the secret tactics for marketing to seniors and creative ways to consistently generate new deals each and every day.
PLUS- Our gold members get marketing pieces /articles/ ads etc each and every month many of which are geared to seniors. ( www.loanofficerformula.com/gold)
STEVE- I am NOT trying sell you anything here! But I do see that you have invested in your education and for that you are to be commended! Very smart! Not to be self -serving but that is exactly what I did many years ago.
I was totally broke- not much left on my credit cards and really in a very bad spot similiar to the one you and many others are in. Rates had gone up — lenders were closing their doors and the market was in bad shape.
While many were leaving the industry in droves or being let go because of company closings I decided to stick it out.. No plan — just sheer detremination.
I clearly remember my wife and I having some heated discussions about this but I decided if I was going down– I would at least INVEST in some education before I did. So I used the little bit left I had on my credit card and started learning everything I could about emotional direct response marketing.
MY FEELING WAS AT LEAST I MIGHT HAVE A CHANCE TO GET OUT OF THIS MESS! and if I was that close to bankruptcy anyway a few thousand more wasn’t going to change it… But it could help get me out of the mess I was in and that’s exactly what it did ! BTW- During that time I had also taken out 5000 from my 401k and used it to hire a mentor —
WHO PROCEEDED TO TAKE MY 5000 DOLLARS AND GIVE ZERO VALUE BACK ! Guess that’s part of the reason why I DETEST fake experts so much! It is personal with ME and even after all these years it still deeply hurts!
STEVE - my fingers are starting to hurt but I hope you are starting to get a better feel about where I am coming from.
SOME FINAL ADVICE !
I know it was painful for you to write that e-mail and sometimes it feels better just getting it off your chest. But you must stay positive…
YOU MUST STAY FOCUSED! YOU MUST START IMPLEMENTING and changing the things that aren’t working. Mindset is such an important part of success ESPECIALLY NOW . It’s an entire module in the loan officer formula!
Pick your niche- Become the expert - Let everyone know about it… As my wife always says- This too shall pass- You are NOT A LOSER ! YOu are STILL A SUPERSTAR and you will get past this!
Please leave me your thoughts and comments below- I think this is something we are all feeling - So go ahead and get it off your chest by writing your thoughts below.
BTW- There is still business out there.. But you must never ever appear desperate — even when you are.
DESPERATION REPELS — CONFIDENCE ATTRACTS
One of the books I give to all of my high level coaching clients is PSYCHO - CYBERNETICS by Dr Maxwell Maltz–
Go grab a copy and read it — I read it at least 4 times a year myself — especially when I am feeling the way Steve does.
Dedicated To Having Buyers Chase YOU !
Brian Sacks
PS- If you are not yet a member of the loan officer formula check out what you might be missing at www.loanofficerformula.com/gold
or to see the membership levels that are best for you go to www.loanofficerformula.com/member-benefits
NOW GO AHEAD AND LEAVE YOUR COMMENTS BELOW!
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{ 20 comments… read them below or add one }
I thought I was reading my life story……..I am a 29 year banking and mortgage originator - I also have been through ups and downs but to use your word “doozy” is being kind! Niche’s are the key at this time, thanks for your encouragement.
In the reality world of retail Mtg Banking there are “response” Originators and “pro-active” Originators a/k/a Branch Monkeys and Bush Beaters. I took a call this AM from a personal Friend who is a Partner in a High-Performance Realtor Group south of Boston. He called to refer a BAM L/O that he really likes but cant refer Purchase Biz to him because of the unreliable BAM turn time. I called the L/O and told him that he needed to move quickly to a lender that will respect the 7 years of relationship building he has done in his territory and give him both product and turn time to service his hard-earned book of business. He told me he is afraid of change right now and will stay with BAM and “hope for the best” ( While he is hoping, his book of business will go elsewhere.) MORAL LEARNED FROM THIS STORY - Take action NOW while you still have abilty to do so. If you dont have an on-board Coach where you work now, buy the most expensive(usually the most detailed) System Brian has to offer and religiously follow-through listening only to the right side of your own “Inner Coach”.
Several years ago, I placed a 15 year experienced $10MM a month L/O with the #1 New England Lender. I placed a call to him a few weeks back and it took him almost a week to return the call-when I asked why, he told me he spent three days in Chicago with his Coach for a One-on One tuneup that cost him $10,000. and that he does it at least three times a year without fail. Can he afford it you may ask? Do the math on his monthly closed loan volume @ 75BPs to him and you will realize that He Cant afford not to. Coaches like Brian Sacks with their industry related personal experience are worth their weight in gold - his advice works and will give you one hell of a ROI.
Steven B,
Be encouraged bro! I’m going through the exact same thing here in Houston. In the last 2 months I’ve had to turn down 10 refi deals (my past cust.) because the values were no longer there. My purchase business has become a pipeline of “credit repair” prospects not yeilding me any money. I hope you have a colleage in the business that you can talk to. It makes it a little better when you can blow off steam to someone who truly undersatnds. Most of mine have gone back to corp. america. I’m going to try and stick it out (prayerfully) I know this thing will turn around but the question is when. Keep the creative marketing juices flowing. There are several thing that you can do that require little out of pocket expense. If you need an ear shoot me an email: atozmtginfo@peoplepc.com
While Brian’s suggestions are good, they overlook the elephant in the room regarding mortgage originators. Until we (or the market) insist that originators have some legitimate (i.e. non-industry) financial credentials, originators will continue to be the poor step-children of the financial services industry. With the money available to a good originator, we should be able to attract folks with B.A./M.A. (Business or Finance), MBA, CPA, CLU, ChFC, JD, LLM, or similar “real” credentials. Instead, because there are no financial education or training requirements for originators, we end up with pizza delivery guys “doing loans” and making 20k/month (and then crashing). We need to stop measuring success by volume and start evaluating how well originators do at helping clients implement financial plans. This requires that originators be able to talk intelligently with the client’s other financial advisors. Until we upgrade our industry, our poor image will remain.
Bill! R U kidding me? Brian advocates picking a Niche (Specialty) and focusing all efforts on it.
I am only a HSG with no formal education, no hands-on Morgage banking experience, yet I know more about the mechanics and sales aspects of the industry only for one very simple reason. I am a Specialist Recruiter with only one Speciality so I knew that I needed to know more about Mortgage Banking than any candidate at any Discipline level and any employer knew about the industry. in other words, before I could be the Master of the game, I had to be a Student of the Game who NEVER stops learning.
If I chose to be an L/O with a Niche in Govt Lending, I better know as much if not more about FHA and State Bond underwriting and Compliance guidelines than a DE L/U or Post Closing Audit Specialist knows. If I did’nt know, I would then just be the Messenger/Order Taker telling the Loan App or RE referring Broker that I only know as much as the Glossary on my Company’s website and hope the loan gets approved-I wont bore you with what generally happens to Loan Originators named Hope.
As a Specialist, I would know by asking the Broker the P&S Selling Price and calling my Assigned Appraisor to check his -90 day comps to see if I should even waste my time taking a 1003. The Realtor will easily recognize the difference between the Specialist and the Order Taker and so will the uneducated Borrowers resulting in repeat biz from the Broker and a borrower Customer-for-life making future prospecting easier with every passing day-pun intended.
OBTW - In my L/O database, a very high percentage of the high-performance L/Os have no formal education. they have two common denominators - 1.) and this is the Primary - Constant PMA. 2.) To a Man or Woman, they can tell the app or Broker at the App table whether the loan will fly, which Investor(s) the loan will Fly with and exactly what conditions have to be met to get it to fly regardless of what their Specialty is.
Hey Steve B , at least you got a wife who will work !! My girl friend left me when I had to turn her Mercedes in ! Steve B , are you a LO FOR A BIG MORTGAGE COMPANY or a local bank ? would love to know ?
Great comments . Steven, listen to Brian. Get a niche. Become an expert. Relate your personal experience to your clients. Most importantly, get into action. All the theory in the world won’t do you any good without stepping up and taking action- consistent, repeated action. And your instincts are right. There are a lot of people in the trainig business who claim to be experts but aren’t interested in anything more than selling you something. Be careful how you spend your hard earned money.
After 30 years in the business, I closed my doors in California and have selected to educate the public about our business, for FREE. Many of my peers are now experts in Loan Modifications, Foreclosures, etc. BUT MANY of them are taking advantage of people’s desperation by charging fees way out of line for the work entailed.
For many, MONEY is all that matters, and the cost of many of the training programs for desperate realtors and originators is also ridiculous. We are now 97 TRILLION dollars in debt with our obligations and entitlements.
I think we need well educated people with integrity in our business, and NO ONE ELSE. I think many are hoping against hope that we will recover soon and it’s back to business as usual.
It isn’t going to be that way. The next 20 years are going to be totally unlike the last 20 years and many should get out of the business now while they have time to create a career in something else. Pretending that this financial crisis is about over, and blue sky is just ahead is deceptive and damaging to others.
Working to clean up our industry, or at least to educate the public about it’s corruption is essential to future borrowers and homeowners.
Hey Guys, we were part of Brian’s coaching group for about 2 years. After one of his seminars we went to the room that night and committed to IMPLEMENTING 10 strategies, a tip from Brian. Today, we always have at least 5 to 7 strategies in motion. The biggest strategy tip he gave us, he told us to get a radio show and guess what, within a month we had one. To this day 3.5 years later we are still on the air and that show continue to produce leads month after month after month. More importantly, buyers “chase us”, because we are now the recognized experts. Sound familiar?? Listen to Brian, get in his group, listen and IMPLEMENT, IMPLEMENT, IMPLEMENT!!!! Right now, yes now.
Thanks Brian, I know you didn’t know I was going to post this, but we credit our survival and flourishing to you and your coaching. Also, you’ve been more than a good friend on other matters and you know what I am talking about.
I feel the pain and then some of Steven B. Here’s my reality: I’m completely ‘tapped out.’ I’m in California and I run into formerly reputable and high performing loan officers at my storage constantly and we are all in trouble. What do we do now that everything is seemingly ‘zeroed out’ in our patch of today’s market? I’m receiving Unemployment because of this ‘mess’ and it runs out in September. My printer broke a few months ago because of thousands of fliers and resumes created for doing odd jobs and my fruitless attempts at finding part time or even full time work to eliminate having to apply for Unemployment Benefits since my layoff and my company’s closure in late 2008. I have now exhausted reasonable efforts to meet the specific deadlines I set for income goals, repeating the same non-productive efforts would be insanity at this point. Perhaps employers outside of our industry regard anyone affiliated with mortgages as ‘pariahs,’ it sure seems like it even though ALL of my cover letters and resumes are professionally tailored to the positions applied for and ‘dumbed down’ for appropriateness-for example, even though my resume lists prior employment at a mortgage brokerage and others in real estate I ‘dumb it down’ for basic administrative assistant positions by functionalizing my activities as ‘Administrative.’
I apply constantly/daily online for all types of jobs and have even applied for dog kennel cleanup with ZERO RESPONSE and even ‘hit the pavement’ arriving in person door to door at local businesses inquiring about work and nobody’s hiring or, if they have a sign in front of their big box retail business that says ‘We’re Hiring’ it’s simply there for the purposes of ‘resume gathering’ and the managers tell me they are fully staffed, imagine that!
For Brian and others reading, to preserve my perfect rental history and good credit, now that my resources are truly exhausted, I just may have to resort to living out of my vehicle (or stay with friends if they are willing) just like the one formerly top professional loan officer I ran into who used to be one of the big names in Danville, CA
If you are like me and are like so many other Americans, I made great money and I put a bunch of it in savings. Then I decided to invest it in something I would own a piece of and could do some building of my own…summer of 2006 and I lost my savings, my piece of the mortgage company as the company closed its doors in January 2008.
I went through one touch time and almost lost my sense of who I am and what I am worth to myself and to others.
The one thing I did not lose or have ripped from me was my faith and the assurance of my friends and faith that I would be back on top again. In the mean time, I have downsized from ownership to rental, but I have no debt or the burden of debt now. Big car is sold and I have a good late model car and only a couple thousand a month expenses and I am sailing fine.
The one thing I did that was so fantastic was to keep my website and keep improving and working it. http://www.klcsloanteam.com Yesterday, I was notified that it is the #1 site for LO across the country. What I have done is concentrate on helping others as I find them by sharing sources, information, programs, and referral information. It has come back time and time and time again.
It is hard to remember what it was that made thing so great when you are hungry, tired, broke, and no idea what to do to get by. SHARE! Share a house, share systems, share ideas, share what you have.
I have a professional financial education with the experience to go with it and I can not get a job because “you are over qualified”. It doesn’t matter. Steven, I will send you some information if that is okay with Brian and put you together with some network friends and partners in the Houston area. Email me at korene@cox.net and I will put you in touch or send me an invitation on LinkedIn and I will put you in touch. We are all in this soup together and we need to reach out and touch those that we can, where we can, when we can.
Hi. I just wanted to say that I too, after 13 years as an originator and marketer, am having a rough time keeping a steady flow of qualified applicants. I recently started using a nice R/E Agent business building software program to get into the doors of realtors again. I am seeing astounding results in such a short time.
Thanks again,
Patrick McCarthy
614-395-2393
So, Patrick, is this software MLM or do you just make an affiliate commission each time someone calls your phone number?
KG
Whoa, Tom! You mix apples and oranges to create a conflict that does not exist. An ideal loan company would have the specialists you describe. But they would be junior loan officer/technicians. The senior loan officers would be the types I describe.
Why this structure? For the same reason it is found in the medical, legal, accounting, and many other fields. The extensive specialized but narrow knowledge of niche specialists make them inherently unsuited for the evaluation of what loan program and options are best-suited to the client’s overall plan. The old adage, “If the only tool you have is a hammer, all problems seem like nails”, comes to mind . The correct choice of loan can only be made by reviewing all available options and the client’s life/financial plan. How much of today’s crisis was sparked by subprime specialists trying to fit every prospect into the subprime mold? How many millions of borrowers were misled into taking Option ARMs by originators purporting to offer financial planning advice, yet failing to explain to borrowers that their effective, marginal interest cost on the deferred interest often exceeded 100, 200, or even 400%?
While the media would have us believe that fixed rates in the 4’s are a new development, jumbo and conforming 20/30-year fixed in the 4’s and even 3’s have been available every year since 2002. Yet, according to lender surveys, almost no originators have offered them until this year. Most have taken the easy sale path of YSP’s, instead of determining what was the best choice for clients.
So I agree that we need specialists. But before an app can go to a specialist, it needs to be evaluated by a senior originator, one qualified to review options with the borrower, to allow an informed, appropriate choice for that borrower’s situation, rather than a choice driven by the originator’s need to “sell” a particular product. Had this model been the norm, we would not be in the financial crisis we see today.
Bill! It may be that in your marketplace, the professional world works backwards. In the marketplace that I have serviced for the past 30 years, it works just the opposite of what you describe. In the Medical Field, the Heart Surgeon earns considerably higher than the General Practitioner. In the Legal Field, the Criminal Lit Specialist earns considerably more than the General Practitioner. In the Mortgage Lending Field, the Niche Specialist earns considerably more than the General Practioner. The “Pinnacle” Jumbo Originator knows every Jumbo product there is, including those he/she does not offer including applicant and asset qualification for the app to reach successful conclusion. Their Sales Training tells them to give the customer what they asked for if they qualify for it. Their instinct for customer-for-life survival and continued referrals tells them to at least inform the client that there are better alternatives when/if there are alternatives even if it means a lesser commission. “All ships rise with the tide” In the hot refi markets of 1992-93, 1997-98, 2001-04 and last December through the end of May the “Pizza Delivery” L/O as you described could earn substantial monthly commissions. Any Senior L/P or Sign-Off L/U with 3 years experience could take a 1003, pull the credit, order the docs and after looking at the completed package, possibly make a loan product recommendation that is better suited to any Loan App’s needs. So why don’t these L/Ps and L/Us move in droves up to the more lucrative L/O position? No sales skill or formal sales training or knowledge of The Art of The Deal. In other words, they are not Rainmakers. The Rainmaker will learn the mechanics of Mortgage Lending a lot faster than the mechanic will learn how to be a Rainmaker. Those L/Os who failed to master their game and specialize died each time the Tide fell.
Several years ago, a Bentley Salesman was referred to me by a top-200 L/O that I had placed. I reluctantly agreed to interview him and placed him as a new L/O with the same company that the referring L/O worked for. The President of that company easily recognized that he was a Rainmaker in the Luxury Auto biz and was giving up a steady $300K+ annual income with no guarantee of success. His first year, he only earned $150K dealing with his prior Bentley buyers. For the past nine years, he has not earned less than $500K per year. When I did a 3-year “Temperature Check” on him, he told me that he spent the first year working in Processing, Underwriting, Closing, Rate Lock Desk, Investor Relations and even a grueling two weeks in the Capital Markets Department while he took Apps from friends and former car buyers at night. Once this Rainmaker mastered the mechanics, the rest came naturally.
If you want to be in the Pinnacle of your profession, find the Niche that you are totally comfortable in, make it your Specialty and it WILL rain for you.
I too can relate to everyone’s pain but I am determined to make it through this crisis and meet my goals. I made a commitment to myself and I am going forward. I had to let my mortgage go 90 days past due to have the money to sign up for a Silver membership with Brian (I was up all nite making that decision). I did a presentation for 3 Realtors on FHA and the 203K streamline (my Speciality) last week. They referred 2 clients to me since then. I Faxed the Realtors a copy of the Help Us-Help You checklist from Brian’s System Module and just had ANOTHER Realtor from their office call me. Thank you Brian for motivating me to start working on my buisness. My heart is wih all of you struggling to get back on your feet.
brian is the best when it comes to helping you stay and grow in this business. for all those that want to complain and just have an excuse for all the issues you have. please dont bother getting involved with brian because you will never change the way you need to be succesfull. but for all those that want to succeed go ahead get brian as a coach and you will be doing well. i have been a member of brian’s team and i am where i am today because of him.
thanks
This is excellent advice. Many of us have been victims to the bad economy as well as letting the circumstances let our self image down. It is important to constantly keep our picture, our image in our mind and not get distracted from our true purpose.
If you are in foreclosure, like many realtors and even loan officers, it is time to fight back! Many don’t even know that they can stop foreclosure wih a loan modification through Professional Loan Consultants. If you would like more information on how a loan modification can help you, please visit:
http://www.professionalloanconsultants.com
Brian, here I’m still doing my 1-2 hours a day cold-calling(which you do not approve..) and getting leads and loans…my best, Leo
Tom,
You’re still mixing apples and oranges. You only talk about how certain niche pros generate large volume. But you have never addressed my original point about the need for originators to understnd how to integrate the mortgage into the overall financial plan for the best overall results. You (and most of the industry) measure success purely by volume. But you never talk about how well the originators fit loans to the borrowers. Your comments parallel those of an industry producer/lecturer legend who openly boasts about his high volume putting people into bad loans because that is all he had.
And your analogies don’t fit. In your examples my equivalent position would be the senior cardiologist of a cardiology practice or the senior criminal defense attorney of a defense or large law firm. We simply have different priorities. I believe quality - not volume - must be the first priority. But I want to be clear that I strongly support the concept of niche specialization provided that there is someone to see the “big picture” and ensure the the niche specialist’s product is the best fit for the client and is not suggested because that is all the specialist offers.