Recently, a loan officer asked me if I had any tips on how to market to, attract and work with wealthier clients, and subsequently, higher loan amounts.
The first thing I can tell you is that
In this niche, it’s a one-on-one game. It’s a who-knows-who game. It’s about becoming a high profile, higher mortgage balance loan officer. It’s about knowing your jumbo products inside and out.
Here are seven tips that may help you break into the higher loan balance market and make you some more money.
1. Go where they hang out. I don’t want to stereotype people by saying that all potential wealthy clients hang around these places, but you’ll find quite a few will hang together, join the same clubs, belong to the same charities, etc. Here are a few places to find them:
Charity events—In addition to wealthy donors, you’ll find their friends attending charity events. Consider working as one of the volunteers in helping put an event together. Consider buying a table and invite real estate agents or wealthier friends to join you. (Yes, that would be considered as part of your marketing budget.) Participate in a charity auction.
Country clubs/boat clubs—Even if you don’t play golf or tennis or own a boat, there are plenty of activities to participate in. They may have a bridge club or a high-end restaurant or there is a book club that you can join.
Board of directors—Nonprofits are always looking for people to serve on their board of directors. While you may not get appointed right way, start out by becoming a committee chairman, do a good job and work your way into that position.
2. Schmooze with people they know. Quite a few wealthier people that I know usually work by referral only. This would include accountants, attorneys, stockbrokers and financial planners. Get to know them. Let them know you specialize in higher-end mortgages for wealthier clients. The best part is they also hang out at charity events and country clubs and belong to local boards.
3. Realtors who specialize in luxury homes. While you might think that high-end buyers tend to pay cash when buying a home, nothing could be further from the truth. Their financial advisors tell them to keep their cash and take out the highest mortgage amount they can afford. Meet with real estate agents who specialize in listing and selling luxury homes. Ask them how their clients finance their homes, how the deals are structured, and what loan officers are they working with now and why they like doing business with them.
4. Corporate benefits programs. In a nutshell, an employee benefits program is where you create a bundle of savings for employees if they buy, sell or refinance their homes. One of the side benefits is that you get to meet with the president or vice presidents of the company. My experience has been that they also want to save money, and 30% of the higher-ups that I met with ended up refinancing (or buying) their homes with me.
5. Read and understand tax returns. This niche is unique in that wealthier clients may own several companies. They may be involved in investments, oil wells, partnerships. You’ll see things on their tax returns that you’ve never seen before. Oh, and not only do you need to know how to read the tax returns; understanding how to prepare a cash-flow analysis is a must-have skill, too.
6. Know your loan programs. This usually requires that you have good relationships with jumbo lenders. Ask them to explain the unique programs that they offer (adjustable rate and balloon mortgages are popular with this niche). Will they allow seller-held second mortgages? What types of homes will they finance? Who are the appraisers who also specialize in luxury homes? Learn how to explain (and compare) the various loan programs to your clients. There are several software programs you can subscribe to that can help you illustrate the differences.
7. You need to dress the part. It does not take a lot of money to look like a million bucks. Hire a wardrobe consultant. Many department stores have them on staff and will consult with you for free, as long as you end up buying their clothing and accessories. They will end up saving you money because they will also suggest items that are on sale. They will suggest high-quality pieces that will last a long time. They will help you put it all together without you spending money through trial and error.
This is a niche that you have to cultivate. It does take time to get to be part of the “in-crowd.”
As they say, “find a niche and get rich,” regardless of whether you specialize in working with first-time buyers, investors or wealthy clients.
