Marketing to Sub-Primes
By Carol Muir
My #1 Marketing idea.
My number one marketing idea is to help chapter 7 bankrupts who have been discharged get into a new home. There are so many out there. In my area alone there were 18,000 bankruptcies filed in 2002. This was just a part of the state and it is getting worse. They are so happy when you tell them that you can get a 90% or 100% loan. Many do not realize that especially if there credit was very good before, that after 2 years the score jumps back up to where they can get a 100% loan. And remember most have no or very little debt and may have reestablished.
My #1 strategy for obtaining business from referral sources
To obtain additional business from my real estate broker I tell him that I give him 100% of my clients who are looking to purchase a home. He in turn is motivated to give me as much of his business that I can handle. He even gives me refinance customer although he knows that he will not have any monetary gain.
To obtain business from other referral source is very simple. I ask for it. There are times when I help the customer by working with them on the broker fee. At this point I tell them that the reduction on fee translates to referrals. Where this is very effective, is when I work with customers who are buying and selling properties and need all the money they can get. They usually have good referrals. Also I feel comfortable in reminding them that they need to send me a few referrals. Remember that customers are always looking into “what is in it for me”.
My Unique Selling Proposition
My unique selling proposition is that I offer my customers free consulting assistance that is not normally given. For example especially with first time homebuyers, I try to lead them through the total home purchasing process. From what to look for in buying a home to how to improve their credit score and manage money. I just worked with a young couple today and they wanted to know how to improve their credit score. What kind of expenses to expect after moving into a home. Things such as lawn and garden care came up. They wanted to know how much this would cost. Things that I do not know about I find out and get back to the customer. The important thing is also to let the customer know that I offer this service as part of the mortgage experience and that is what makes me unique.
My #1 Method for Internet Lead Generation
My method of Internet lead generation is to stay away from Internet Lead generation. I mostly do BC loans and have found that this source for lead generation does not work for me. I tried and found that referrals and direct mailings were more productive than Internet Lead and a better return on investment.
My # 1 Direct Mail Piece
My number one Direct mail piece is attached. As mentioned above I target market one and two year bankrupts in my local area. I have had great response, as many bankrupts who have been discharged are prime candidates for home ownership, especially after being discharged for 2 years. I have been getting at least 1% and have gotten up to 5 percent response, and the referrals from these are great. They usually know other bankrupts or other credit challenged people. Once I set an appointment with one who had revived my letter and when I arrived his friend who had receive the letter was also there. He said I only had to do the presentation one time. Attached is the letter that I got from the company where I bought the leads. I think Brian Sacks was the creator of this letter and it does work. He can be reached at brian@loanofficersuccess.com.
The letter:
Solutions for today’s homebuyers
Name
Address
CityState Zip
RE: Case no:
Dear
Upon research, we have discovered that since you were discharged from your Chapter 7 bankruptcy on , you may qualify for a mortgage to purchase or refinance your home. At Mortgage Security Network, we specialize in helping those who have had difficulties with past credit, employment, and /or down payment problems. I personally have helped many people who have had past credit problems, bankruptcy, and foreclosure due to circumstances beyond their control. These individuals thought that because they had a bankruptcy (and even a foreclosure), that they would be turned down. However, to their amazement, they either bought a home or refinanced the one they already owned. Many of these folks bought or refinanced within 30 days from the date of my meeting with them.
If you’re tired of being turned down, or feel like nobody cares about you, but you have the desire and the will to get into a home, then simply give me a call to set up an appointment, so we can get started and help you get in that new home of yours. You will be happy that you took the time to call me!
Please call me at (954) ……... You could be in your new home in only 30 days*.
Sincerely yours,
Senior Loan Officer
(954) ……….
- FHA LoansVA LoansConventional Loans
- All Credit types considered
*Subject to verification of credit, income, employment, assets, and program guidelines.
Company Address Tel:(954) Fax: (954)
My #1 Time Management Strategy
Mondays are usually hectic days for everybody. So I usually do my personal things on Mondays, update my database, send out thank you notes, and purge files and such. I do not call the bank if I do not have to on a Monday. I also practice this strategy at the end of the month. You will notice at the end of the month purchases go ahead of refinance when closing so I do not waste time calling on a refinance files. Conversely your purchases have a good chance of closing quicker at the end of the month. Also the next business day after the end of the month is not a good time to call the bank either. They are still cleaning up end of the month stuff. I also use Mondays to do pro bono work. This strategy works for me.