So how was the first half of 2015 for you?
We are now midway through the year. There are six full months' worth of business yet to be done.
Now that we are midway through the year, you should review these figures for the year and adjust your goals and plans for achieving them so you can have a great second half of 2015.
I recently took my son to college in South Carolina. He was recruited to play D-1 Lacrosse at Furman University and one of the ways they assist their student athletes is by giving them a free summer session so they can get some classes under their belt and not have to take a heavy course load during their sports season.
We are packing up today for the 10 hour trip from Baltimore to Greenville. There are a number of routes we could take but we have mapped out one that seems to be the fastest and easiest way to go.
Strange that this would be exactly the thing you need to do with your mortgage business, isn't it?
But, stop and think about this for a second. Hopefully you have set a goal for 2015 in terms of how much you want to earn and how you will accomplish that goal. If you haven't, you need to do that right now. I'll wait.
For example, if you want to earn $100,000 and your average loan is $200,000 and you earn 100 basis points then the math is pretty simple right?
You need to originate 55 loans and close 50 loans (50 x $2000 = $100,000). The remaining five are loans that don't close. You really should not have more than a 10% fallout rate on loans you originated.
How will you accomplish this?
This is the most important question you can ask yourself.
Here's what my list looks like. (My figure is higher than $100,000 in income so adjust yours accordingly):
- Realtors: 7 deals per month
- Referrals: 2 deals
- Direct Marketing: 3
- Boomerang Buyers: 3
Now take a minute and write yours down. Realtors and referrals are self-explanatory. Direct marketing includes You Tube ads and videos, as well as Facebook and direct marketing to renters.
I also target another segment called "boomerang buyers." These clients have a challenging credit history, often including bankruptcy or foreclosure, but are eligible for approval under current guidelines. Very few originators are marketing to them but they number 7.3 million and they are eager to rebuild their credit and own a home.
Note: I only market to those I know fit current guidelines for Federal Housing Administration, Veterans Administration, conventional and other non-QM programs.
Now you have a plan. You know exactly where you want your business to come from, and you know exactly how much you need from each source.
To keep yourself accountable, track your progress each month through whatever organizational means is most efficient for you, be it on paper or in an Excel spreadsheet.
This is exactly what I will be doing on my trip to Greenville: checking consistently to make sure I am on the right road and headed in the right direction. Am I on time? Am I lost?
Here are some questions you should ask on your journey:
Did I originate the correct amount of units?
Did they come from the sources you anticipated? If so, great. Can you kick it up?
If not, what worked? What didn't? Why?
Should I replace that strategy or try to tweak it?
Please don't just read this article but actually take out your pen and paper — or laptop and excel sheet — and start planning your success for the second half of 2015.
Brian Sacks is the president of Loan Officer Tips and Agents Chase You.