The new mortgage origination paradigm must include building relationships and networking, skill sets that many new to the business did not learn or chose to neglect during the boom years. It is more than glad-handing when you walk in the door; these relationships need to explore issues that go beyond the point of sale.
Residential mortgage originators can take a lesson in how to do this from a commercial mortgage originator. Cambridge Realty Capital Co., Chicago, specializes in originating the Department of Housing and Urban Development/Federal Housing Administration Section 232 program loan for senior housing and healthcare properties.
And when its asset management group schedules business meetings involving ownership principals or property operations managers, the company said participants are expected to bring along their party shoes.
Cambridge's philosophy embraces the idea these meetings are primarily about creating opportunities for relationship building. Informal time for socializing is just as valuable as the agenda of formal business issues and should be given equal priority when planning the agenda, senior vice president Brent Holman-Gomez said.
“Along with many scholars, Cambridge recognizes the need for organized and planned meetings in person between the asset management group and ownership or the operating management company. Regularly scheduled meetings seek to not only enhance communications but also align the interests of participating parties in order to achieve common goals,” he said.
At these meetings, Cambridge and its guests look to accomplish a number of different things. For openers, they must agree on goals and the steps needed to meet them. And there is a continuing reason to plan for future needs and changes.
“It's important for participants to better understand each other's business in order to identify potential conflicts and figure out ways to avoid them,” Holman-Gomez noted.
Although written reports are provided, Holman-Gomez believes that names and numbers on a page are not nearly as effective as interpersonal communication. Between meetings, parties keep information lines open using telephone conversations, conference calls, emails and Skype.
Speaking of those technology-based lines of communication, marketing consultant Maribeth Kuzmeski stresses the importance of once again valuing great conversation—an essential element in building strong, mutually beneficial, and even profitable relationships.
“Conversations are the building blocks of relationships,” said Kuzmeski. “Without it, we form relationships that are devoid of substance. Unfortunately, we live in a world where the modern MO seems to be less talking and more texting. People either think they don't have the time or don't think it's necessary to take the time to have real conversations with each other. But for anyone who wants to create truly beneficial relationships, you have to stop texting, walk away from the computer, and connect with someone one-on-one through a great conversation.”
Conversation puts quality ahead of speed. Today, you can find out almost anything you'd ever want to know about someone and/or their company online in seconds. You can rattle off a text faster than you can dial someone's number. You can send an email out to multiple contacts in a couple of minutes. But with this speed of communication, you often sacrifice quality; and, ultimately, this sacrifice leaves you with paper-thin relationships.
“Texting, IMing and emailing provide great ways to communicate, but there is a one-sidedness to the kind of communication they allow,” said Kuzmeski. “There is a delay in the actual exchange of ideas that doesn't exist when you are speaking with someone. With these methods, the chances are also higher that you will be misunderstood or you will misunderstand the other person because there's no way to capture tone and feeling in a way that ensures it won't be confused. To truly express yourself and allow others to express themselves, conversation provides the highest quality of communication.”
She continued it's a great way to invest in others. The act of listening—the other half of having a great conversation—shows people you care. “Have you ever been around someone who just wants to listen to you, wants to hear all about your day or your recent trip?” asks Kuzmeski. “Someone who is truly interested in you.
“You might not find them very often, but when you do, they really stick out. When you speak with someone and listen to what he or she has to say, you are showing that person you value him or her. And the wonderful thing is that in the flow of a great conversation, he or she is giving that courtesy right back to you. To me from a business perspective and in life, if someone wants to listen to what you have to say, then he ors he must be a good person and someone you'd like to be around.”
Furthermore, if there has been an “oops” and your relationship has been negatively impacted, speaking to someone, rather than firing off an electronic message is the best way to undo the damages and mend a broken relationship.
There are some situations in business and in life that should only be handled via a conversation, she stated. The bottom line is, sometimes an email or a text just won't cut it. Mending a broken relationship is one of those situations.
“When you're in trouble with a client or you've hurt a friend's feelings, you have to get up and go see the person or, at the very least, pick up the phone and call, even when the conversation might be uncomfortable for you,” said Kuzmeski.
“Have breakfast with the person. Have a lunch meeting. No matter what you do, get in front of him or her. Your client will appreciate that you've shown up during tough times, and you'll be showing your friend that you value him or her enough to make the time. This is how you begin to rebuild trust, something that will be very difficult to achieve if all you're doing is pushing the 'send' button.”
When it comes to networking, Tom Fleming, executive director of Business Networking International West Central Florida, said statistics have shown that B2B relationships can supplement the costs of more traditional forms of advertising since referrals are highly qualified and likely to be interested in your product or service and thus they are easy to convert. This makes the cost of acquisition low and the return on investment high.
Many people think that growing a business by referral consists of shaking hands, passing out business cards and asking current clients, “Do you have any referrals for me?” only to get a resounding “no” as a response. These three activities don't even begin to scrape the tip of the iceberg when it comes to growing a business by referral.
He said growing a business through business networking and referral-based marketing is more about farming than it is about hunting. In troubled times people with a wide and deep network have a team of people to tap into for support. This is what gets their business through tough times.
