Which would you rather have? We know that may sound like a strange title but please stay with us and you will learn a great marketing lesson. We are always asked why we choose the reverse mortgage program as our specialty. Many years ago we learned a valuable lesson which we will share with you in this article.
But first let me ask you an important question. Close your eyes for a second and pretend that you are about to open a restaurant in your town, specifically a burger joint. Now let me ask you a question. Which would you rather have: (A) the best burger in town, or (B) a starving crowd?
We hope your answer was a starving crowd. Why? Simply because every burger joint in your town claims to have the best burger don't they?
It's the same in our business. Yes, you can do Federal Housing Administration loans, refinancings, Veterans Affairs loans, and purchases. Yes—I know you give great service right? Well you should! But don't you hate those clients who shop you and make you feel like a commodity? We call this the "head of lettuce syndrome;" it means all the lettuce is the same so why not just look for the best price.
How does all of this apply to our industry? Let's take a step back and think about who a starving crowd might be. A group that is facing serious issues and needs a solution. The group we came up with is seniors and boomers (there is a big difference between them). Here are some of the issues they are facing.
1. Their medical and prescription costs are going up.
2. Their daily living expenses are going up.
3. For the past two years they have not received a cost of living increase for their Social Security benefits.
4. Their portfolios for those who even had one were decimated in the market crashes.
5. The other funds they had set aside are earning less than 1% and they can't live on that.
6. In many cases their children are moving back in, something they had certainly not budgeted for.
7. They can't find a job given the current economic climate.
8. Their homes need repairs or need to be equipped for their physical challenges.
We could go on and on but you get the point. They are a starving crowd. They need our help and they need it now. The solution for many is the reverse mortgage. This group is growing by 7,500 people per day.
There are a few tips you need to understand if you want to work with this starving group. You owe it to them and to yourself to be up to date on the reverse mortgage programs including the new HECM Saver meant to lower closing costs.
But that is just the start. You also need to understand their core values and their motivations. What makes them tick and what fears and challenges they have. Some have gone through the depression and World Wars so they have their own views on money and asset allocation.
Lastly you need to understand the proper legal and financial instruments and how it affects them. Now don't misunderstand. You should never ever give legal or accounting advice but you must know what you are talking about! These folks will know immediately if you don't.
Now that you know who the best "starving crowd" is for our industry we encourage you to go out and be their problem solver. You will be doing a good deed to a population who needs you and you will no longer have to feel like a head of lettuce. Have you lost a reverse mortgage loan to another originator and wondered why? Set yourself apart. We’re here to help you.
Sue Haviland and Brian Sacks are the founders of
