How to Deal With Low Inventory-Ralph Watkins

Our organization has the privilege of helping hundreds of Loan Officers build their businesses on a full-time basis. Being in this position allows us to keep a pulse on emerging trends in the mortgage industry.

We can see challenges coming from a long way off and develop strategies to deal with them in the most effective way.

One such challenge that we’re hearing a lot about and which is already rampant is the issue of low inventory.

In this seller’s market, our LOs are reporting that many of them have long lists of “pre-approved and looking” borrowers. They’re all dressed up with no place to go.

Many of their borrowers have shared their experiences of making multiple full price offers only to be outbid by others who overpay for the properties.

For Loan Officers this can be very discouraging, however, discouragement doesn’t pay the bills. What you need is an effective strategy.

Right now, low inventory is simply a given. We can’t wave a wand or twitch our noses and create more inventory. This is just a cycle in the market.

Different market cycles dictate the need for different approaches to marketing. For the current market conditions, one word jumps out at me when I think of marketing. MORE!

More? More of What?? Well, since there is isn’t more inventory, you’ll need more of the activities that generate referrals for whatever inventory DOES exist.

If there were more available houses than there were people to buy them, then theoretically, everyone whom you pre-approved could close (wouldn’t that be nice?). You would need fewer borrowers to achieve your desired level of income.

However, since the opposite is true right now, what you need is more. You need more borrowers. To get them, you’ll need more referrals from more Realtors.

To get THOSE, you’ll need more of the activities that make those happen; more phone calls, more coffees, more lunch & learns, more handwritten notes.

In short, more of everything.

Here is a quick two-step plan to get you more business.
1. Think of some marketing that has been successful for you in the past.
2. Do more of that.

Is it really that simple? Yes and no, but mostly yes.

As successful Type A business people we have a tendency to overcomplicate things. We develop “rescue” plans with many moving parts, then get bogged down in their implementation.

Often, they just collapse under their own weight. So let’s “Keep it stupid simple” and go with a plan that you’ve already proven to be successful.

A word of caution here is that it’s easy to think of reasons why something won’t work this time even though it worked brilliantly last time.

Yes, sometimes situations DO change but usually, it’s just “little guy” popping up on your shoulder and playing mind games with you telling you “everything is bad”.

He was probably there the first time you did it also. You flicked him off then, so flick him off now. 🙂

One more thing, this current business cycle requires tunnel vision. Peter literally walked on water until he took his eyes off of his Goal and began focusing on the wind and waves around him.

When he started paying attention to the “reasons” that what he was actually doing “wouldn’t work,” he began to sink.

So, starting right now, dig out that script. You know, the one that worked so well for you that you quit using it and start calling more Realtors to schedule more coffees.

Pull out that mailer that got such a great conversion and send it out again to more people. I promise that no one is going to bust you because you already used it.

Above all, insulate yourself from all of the hand-wringers who want to sit around and complain about why there is no business or how hard it is. It’s SUPPOSED to be hard. If it were easy, everyone would be doing it (and no one would be making any money).

So, starting today, be more and do more so you can have more.

Stay tuned for upcoming posts where we’ll be talking about some “out of the box” strategies that will help you do….more!

PS. If you need help coming up with a strategy that gets tons of solid quality leads (never buy leads by the way, learn how to generate them), let’s set up a complimentary strategy session as my way of saying thanks for being one of our subscribers.

Just go to LoanOfficerStrategyCall.com and we’ll get that set up for you and I look forward to strategizing with you and sharing some of the top things that we are doing.
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