mortgage industry

Facebook ads, are they effective and do we get a positive rate of return, or are we just padding ol’ Mark Zuck’s pockets?

After spending millions of dollars of my own personal money on these things, I’ve learned a thing or 2 of what to do and what to avoid like the plague…. Read on…

First, what to avoid… 
Consumer direct Facebook ads are a colossal absolute no-go for a couple of reasons.

#1: The leads from them convert at between 0-2%.  Usually around 1%.  The problem with that is, it’s not scalable.  We have to wade through 100 leads/conversations to get to 1 “yes”. 

So if you want to close even just 3 loans a month, be prepared to have 300 conversations.  Those are real numbers.  I don’t care to get beat up 300 times in 1 month…
Not a good use of time.

Keep in mind that our referred leads convert at around 25%.  So even just a modest 5 closings only takes about 20 referred leads.  Much more of a “sure thing” and certainly far less work.

Now what actually works…

However, Facebook ads to another 2 groups of people can have far better results.

#1: Your past database
#2: Real estate agents that are closing at least 8 buyer sides in the last 12 months.

Facebook lets you get a list, for example, your past database, and upload it in their system, then run ads to just those people.  Nobody else sees it, just people who know, like, and trust you.  No wasting money on strangers.

So when you are running ads to your past database, those same people that you closed with, the same people that you are calling every quarter, and now they are seeing how you can help them with a debt consolidation loan, can you see how that is so much more effective?

Same thing with the agents who are actually closing deals right now, when you give them a compelling reason to do business together, and when you are making your money making calls to them, it’s no longer a “cold call” because using Facebook ads, you can position yourself as a local celebrity.

And it costs very very little to run these ads to our past database and to qualified agents.

Combine those ads with the “Loan getting” calls, well, that’s how champions are made.

Very simple steps here. 

Just an FYI, with a click of a couple of buttons, you can have access to complete training on
1. How to run those FB ads profitably
2. What is the best way and best script to make these warm and fuzzy calls.

Just Go Here and we can walk you through the process on getting access.

Simple stuff.

That’s how FB ads are done successfully by the pros.

And now you know.

This will explain why so many LOs are having to tap out, while at the same time, some of my clients are having their best year ever… read on.

So likely you’ve heard of “Green time” vs “Red time”… but have you heard of GOLD TIME?

See, “green time” is when we are prospecting to agents and/or our past database to get more referrals.  The more green time, the more green goes in your pocket.

“Red time” is when we are chasing paystubs, calculating income, you know the reactionary stuff.  Don’t get me wrong, it’s important, but it holds you back from prospecting for yet another referral and another closing.

I was talking to Mark Pfeiffer (one of my private clients and a super cool guy who is very successful) the other day and he reminded me of something.

We need to spend at least an hour a day doing “Gold Time”.  Gold time is when we are prospecting to somebody that is not referred to us yet.

You see, if we spend all of our time doing green time, which is prospecting more referrals from those that are already referring to us… that’s actually a problem.

Here’s what happens…

Over time, those people retire, move, quit, have a nephew that becomes a loan officer, life happens, whatever.

And over time, that list will dwindle down.

So even when things are going great, like Nate Carver (a member in the Loan Officer Freedom Club, a mastermind of top producers), who closed 7 loans in October, 9 in November, and 10 in December…
… he isn’t just calling those who are currently referring to him.  No ma’am, no sir…

He’s spending a couple of hours a week calling on those that aren’t referring to him yet!

That’s where the growth is coming from.

Very important point.

So thanks Mark for reminding us of this.

Add some “Gold Time” to your “Green Time”.

Want to go over who to call and what to say to them to get them to start referring to you?  I’ll Hook You Up Here  <no charge>

Congrats to Freedom Club member Dave Wicki for 10 closings and an additional 12 pre-approved and looking from marketing to his past database.

We all know that marketing to our database works, like EVERY TIME, you know, as in closing more loans.

Just taking the time to do it is the key.

I found a way to outsource part of it for almost nothing and yet get great results.

So there are 3 things we do with our past database.  We call them every quarter, we snail mail them once per month, and email once per week.

The snail mail is a HUGE part of it.  We expect 1 closed loan PER MONTH for every 100 people in our database.  So if you have 300 people in your past database, I would expect 3 loans per month from it… EVERY MONTH.

As far as what to mail, after doing massive studies on this with my own database, I found that much to my surprise, it really doesn’t matter what I email them, I got great results on all of them.

Whether it’s a thoughtful “letter from the heart” or a recipe postcard, one works as great as the other.  I have found that mailing them “mortgage information” gives the worst results.  So anything other than that is good.

I found the best way to make sure it happens each and every month is the key.  So I farm it out to make sure it gets done.

Here’s a secret trick that works great and costs about a buck or so a month for each person.

Step 1:  Learn what one of their hobbies or interests is.  I do this during the loan process or on the quarterly phone calls.

Step 2:  Go to www.DiscountMags.com  Pick out a magazine that is in line with their interests.  For example, Better Homes & Garden is around $17 for the year.  So for around $1.45 per month, I’m giving them a cool gift that is automatically delivered.

Step 3: When you put in the address for it to be shipped to each month, PUT YOUR NAME in the 1st line of the address, just underneath their name, so that they are reminded that you are the one giving the gift each month.

For example
John Doe Buyer
Carl White Loan Officer

123 Their Address St
Anytown, FL 34683

That’s what you put in the blanks when you order the magazine at DiscountMags.com.

I then just renew it every year.

One thing to keep in mind, most of the referrals we get from our past database aren’t for them, it’s for their friends, family members, or co-workers.

So there you go, a simple little trick to keep those referrals coming in!

Oh, and remember, without the actual calls, none of this works.  Don’t fall into the trap of thinking that we’ll have success without the calls.  I’m convinced that’s why so many are struggling right now.  They forgot about the calls.  Don’t fall for that trap!
Learn more here

Investing in professional loan officer training offers numerous benefits for your career growth. Let’s explore some of the advantages you can expect when you choose to undergo comprehensive training:

1. Enhanced Expertise

Professional training allows you to acquire in-depth knowledge of the mortgage industry, including the best ways to reach out to referral partners, daily success plans, and better structure for your transactions. You’ll gain a deeper understanding of how top-producing loan officers maintain a steady stream of loans in their pipeline each month, enabling you to do the same activities that can provide similar results.

By staying updated with the latest mortgage marketing trends, you can offer innovative value to agents and stand out from your competitors. Your expertise in solid communication, and having a community of support dealing with any loans, such as conventional, FHA, VA, and USDA loans, will enable you to have the structure to bring your agents and clients the best experience possible, leading to more referred leads. This is why past database management plays a key role.

2. Improved Sales and Communication Skills

Effective communication is a vital skill for loan officers. Professional training equips you with the necessary techniques to effectively communicate with real estate agents, clients and other industry professionals involved in the transaction from A to Z. You’ll learn how to build rapport, ask the right questions, and build lasting relationships.

Strong sales skills are also essential for success in the mortgage industry. Professional training programs often include modules on sales strategies, lead generation, and referral partner relationship management. By honing your sales abilities, you’ll be able to convert more leads into closed loans, resulting in higher commissions and increased career satisfaction.

3. Credibility and Trustworthiness

Clients value loan officers who are knowledgeable and trustworthy. By investing in your business with loan officer training, you demonstrate your commitment to providing top-notch service and building lasting relationships. Professional training enhances your credibility, giving those you work with the confidence in your abilities to guide them through the loan process.

Additionally, lenders and real estate agents also prefer working with loan officers who have undergone professional training. Your enhanced expertise and industry knowledge make you a valuable partner in their transactions, increasing your chances of receiving referrals and building a strong professional network.

I love strategies that are super simple, super successful, and actually work.

I’ve seen several different versions of this, and at our last Freedom Club meeting, it was brought up again, so I thought I would share it with you here today.  <you’re welcome>

So 1^st, we have to recognize that when we want to help somebody (ie, bring a “value add”), we have to know what their actual problem is…

Real estate agents are not the best at following up, and they have a ton of people, and leads, that they worked with the last 12 months that didn’t buy… and they aren’t calling to follow up with them.

So here’s what you do…

1. Call up agents, ones that you worked with in this past year, even if it was a listing agent on one of your deals.

2.  Ask them this simple money-making question:  “Who did you work with this past year that should have bought a house, but didn’t?”

You then explain to them that 85% of people that actually buy a home, buy AFTER more than 90 days from the first contact.  Only 15% buy in the 1^st 90 days.  (real numbers). 

Most agents (and LOs) are fighting over the 15% and have totally ignored the 85%.

Then explain how you are going to contact those people with a proven script (the “9 Word Conversation” one combined with the “Future Casting” one) which will all result in more closings for them… and you. ☺

We find when we do this activity, we don’t just get closings from their older (but still very good) leads, we also get even more of their current referrals too because of the results in advance that you have given them.

In their mind you have created magic… taken older leads and got them (and you) new contracts right now.

In reality, it’s just simple math.  Those “older” leads are actually way better than most people think because they don’t know about the “85% that buy, buy 90 days or more after the initial contact.”

So it’s not really magic at all, it’s just sticking to the basics while avoiding the distractions.

Really, the bottom line script to the agents is “Don’t buy more cows until you milk the ones that you already have.”

In other words, let’s work the leads that you already have had this year before we go through the time and expense to get even more leads when we really haven’t worked the leads that you already have.

That’s pretty much it.

Those are your marching instructions.  Now it’s time to go do it!

When you need help on how to convert these “Oldies but Goodies” calls and go over the “9-word email”, and “future casting”,
Just Go Here and we’ll walk you through it <no charge>, just another random act of coolness. ☺