Over the past couple years a bit of a storm has been brewing, I have been thinking about the way this Phoenix Real Estate industry has been running and finally I decided to put in my two cents. About 97% of my business is referral based, and 95% of those people referring me to their friends family and clients are Real Estate agents who truly trust me to take care of their “people”. What do I mean by “take care”, I mean doing what I say I’m going to do, closing loan transactions on time and making the Real Estate agent look like the hero because they referred me. This is the simple concept that has led me to the success that I have with my business, I cannot dis-credit the fact that my knowledge level and innovative thinking along with a solid mortgage bank to fund my clients loans has also played an important role as well.
The other day I get a phone call from one of my previously high producing Phoenix Real Estate agents saying that they needed my help, and this is great I love to help and as a matter of fact I work very well with URGENT situations. So here is a little background before I go into the rest of this story… This agent was one of my good friends before we started working together in the real estate business, and in my opinion we worked quite well together. After a while I noticed that the amount of clients he was referring to me started to dwindle, the agent “fell off the map” for lack of better words but I knew that he was still working with many clients and closing a good handful of transactions. Me being the person that I am I start investigating, I wanted to get to the bottom of this to see why we were no longer working together… I wanted to find out why I was NOT his main lender referral anymore.
Upon finishing a bit of research I find out that another lender had been touting a bunch of over the top things to this agent, or “pouring honey in his ears” for lack of better words and the agent decided that the grass would be much greener and decided to give it a shot. So then it began, a relationship with a new lender who provided “widgets” and all sorts of wonderful Free knick knacks that were going to make life so wonderful. After all who could refuse such a deal? Not too long ago I get a phone call from this agent, and I already knew what was going to happen and I was waiting for this phone call but he went on to say how this lender “dropped the ball” and that he needed my help. Long story short, I spoke with the client and 3 weeks into her loan transaction, after she had put money into the appraisal and inspection etc the loan officer dropped the ball at the 11th hour and the deal fell apart. I put a phone call in to get a very frustrated client on the other end, and I explain that I am here to help. We begin a loan application and just a couple minutes into the application I realize this client doesn’t even qualify for a home loan! I sit their in awe and wonder how did this other lender drag this out for three weeks. None the less the borrower is on a program to get her qualified in a couple months and she is very upset that she was referred to this other lender and cares to never speak with them again.
In my opinion if you are going to be in the Real Estate industry as a career your reputation is the one thing that can make or break you, especially when most of your business is based on referrals. When you are “endorsing” somebody and they completely screw up a deal for your client this causes you to lose credibility and possibly even losing a client for life. In the 6 years I have been building my business I have been approached by many Real Estate agents to “buy” them knick knacks and widgets to help them market their business, and if I did so I would get all of their referrals. My response goes something along these lines, I have always strived to be the best that I can as a mortgage lender and it’s gotten to the point that I don’t have to “buy” business from Real Estate agents. If you are experienced and truly understand what makes a great mortgage lender you would realize that having someone you can completely rely on to make you shine is worth far more than some free knick knacks and an earful of honey. Rule of thumb, if you are a Phoenix Real Estate agent and you are approached by a lender touting they are going to buy you things to get your business there is probably a good reason why he has to “bribe” for business.
Moral of the story; if you think the grass is greener on the other side, why don’t you spend a little more time watering yours?
-Mr. Electric Himself
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