LinkedIn & Rates
If you are not on LinkedIn, you should be. A great place to connect with (all follow up with) real estate agents, business referral partners, and recruiting loan originators / branch managers. I recruit a lot of originators on LinkedIn. It is no different than recruiting real estate agents. It is very effective when executed correctly.
- Make sure you contact information is current. It is very confusing when your employer posted is from two years ago.
- Post relevant information. Know your audience. This is not Facebook. It is a professional network and no one cares about your kids or your lunch.
- Connect to me, as I sometimes have meaningful things to say.
- If you take a stand on a subject (i.e. boycotting KW agents), make sure you are ready to back up your comments as people will call you out.
Interest rates are on the rise. Not your rates, all rates. The 10 Year T-bill breached 3% for the first time in over four years yesterday. If you do not know what that means, you need to start self-educating. Although this morning is it back down to 2.985, anticipate this to climb. Quoting rates in the 5%s or ever 6%s will be common in the coming months.
- The public still thinks rates are in the 3%s. When you quote 5%, they will have a tendency to shop you. Be prepared, and if you do not know how to sell like a professional, you may have some struggles ahead of you. You need to be able to educate your borrowers and referral partners as to why rates are climbing, for everyone. Get ahead of this.
- Some banks will beat you on some products by as much as 1% to rate. Why? Because banks borrower money at 1.5%, pay their loan officers 50 BPS, and do not need to sell the loans in the secondary market. This is a rare occurrence, but can happen. Again, learn to sell or work for a bank that pays you 50 BPS.
- Start learning how to sell ARMs and Non-QM. This will be the future of lending.
You could lose 10%-20% of your business this year to banks. Keep in mind you will still make 2-3 times the national average in compensation on 80%-90% of your business. Without excuse, you should be way ahead at the end of the day. You are competitive which is why we had the best month of our history last month and grew 35% YTD. Make more contacts and do more loans, and all your problems will be solved. It is not easy, but neither is being poor. By the way, our top producer charges 400 BPS on everything.