It’s Possible to Double or Triple Your Income
If you’re not maximizing the following five strategies, you’re not maximizing your earning capabilities, time, or business values. See how your business stacks up to these strategies.
1. Have a CONSISTENT, dedicated program for generating deal flow.
Most mortgage and loan brokers usually don’t market themselves until the deals temporarily, or permanently stop coming across their desk. However, starting a marketing campaign after deal flow slows down is too late, “downtime” is dead time with no cash flow.
What any business needs is a dedicated, continual marketing program. This consists of networking, direct email, social media engagement, list building, and one-on-one contact with deal sources. If you have a website, keep it up to date, use search engine optimization (SEO) and search engine marketing (SEM). You market during the prosperous time to help keep deals coming in the leaner times. Marketing consistency with a preset budget is one key to success.
2. Choose to work ONLY on deals that will allow you to meet your desired
level of income.
In other words DON’T participate in a deal just to make a few extra bucks – that low commission deal tends to replace time that could be used to work a high commission deal. A larger commission brings you closer to obtaining your income goals. The consistent marketing program generates greater deal flow.
3. Operate in areas where there is little competition – obtaining deal flow will be less expensive and your expertise will be more valuable. Expertise and value allow you to increase rates.
Don’t spend time on finding low cost financing for a 20 unit apartment complex that 10,000 lenders would finance. Spend your time obtaining financing for a “foreclosure bailout” of a marina. The difference to income is significant. The apartment brokerage commission is 1% of $600,000, nets $6,000. By obtaining financing for the marina, you’ll earn 3 points on a $2 million loan or $60,000. You do the math, which income moves you closer to your business goals?
4. Become an expert in the most profitable part of the mortgage business- hard to fund deals.
Operating where there is little competition, affords you time to work on these high fee, hard to fund deals because as an expert you have established relationships with the limited number of lenders that make these loans. You know the lenders criteria, which lender currently has money to fund and how long it will take a lender to make a decision. The borrower will pay relatively high fees – because they have no other place to go. Use this uniqueness in your marketing message.
5.Operate with total honesty, transparency, and as a fiduciary on behalf
of the borrower.
In the long run, your reputation is much more valuable than any enhanced short term gain.
These five strategies will help you bolster your income consistently. Remember, consistency always leads to better performance.
Private Mortgage Financing Partners are experts in financing hard to finance deals (hard money, private money) through our mortgage fund, Private Mortgage Investors, LLC. We are also experts in negotiating discounted payoffs and discounted note purchases with banks, as we also own a commercial debt negotiation company.
Learn more details or to discuss a possible commercial mortgage contact us,
Private Mortgage Financing Partners.