The affluent mortgage borrower, who needs to borrow a large sum for a purchase or refinance, should be easy to "catch" if you plan and prepare properly. Fishing off the dock using breadcrumbs, you are likely to catch an abundance of little sunfish. To catch the large fish, you need to row your boat out to the middle of the lake where the water is deep. The big fish congregate on the bottom of the lake.
You will not catch as many fish as you would while fishing off the dock. However, the ones you do catch will be far larger than the sunfish. Your reward will be greater too.
Michael Covina says to begin fishing the waters of the affluent client, you need to be inclined to learn who the players are and where they congregate. You will enter new territories for your business while putting forth the effort to locate the affluent borrower needing your services. This means you will need to continually network in areas where affluent clients are going to be. Be savvy and read the news and current events. Analyze what sector or group of upwardly mobile, affluent borrowers will need financial services because of current financial trends.
Quick Tip: Right now, with the stock market down, people are investing heavily in real estate again. It's never been a better time to purchase a second home. Find vacation and recreational areas, and then find the Realtors who specialize in second homes and you will find affluent buyers.
Where to Find Millionaire Clients
Show up in circles and groups where the affluent congregate:
Charity functions, certain types of sporting events like professional golf and tennis tournaments, social events, country clubs and polo matches.
Luxury automobile, yacht and private airplane dealerships.
Make contact with professionals such as lawyers and accountants.
Attend seminars and trade shows where company owners congregate.
Read and review announcements in the press, print and Internet for high net worth individuals who may be "in transition" (like changing jobs, acquiring another company, a high profile divorce, a retirement or the sale of a business).
The sale of their home usually means the purchase of another one. Watch the "for sale signs" in affluent neighborhoods.
Obituaries: Very often, the estate will need some financing and a large home may be involved.
Bankruptcy filings, lien filings and government liens are important. Many times, affluent borrowers will have problems with taxing authorities and will require immediate cash-and will use the equity in their homes.
Professional athletes: Read the sports section of your newspaper and network with business agents.
The basic axiom of the mortgage business is that the harder you work, the more money you will make. A good mix of different clients will compliment your conforming, conventional business with an occasional large loan where you will make substantial fees.
If you orientate yourself to the high-end sector, the rewards will increase three to four-fold over your normal time investment-reward-ratio. You will meet new and interesting people, and increase your business.
Karen Deis is president of
