Share with you got 80 Calls on 250 Mailers!

[florida man]

Guys

When i first came to florida, i did try a huge package with the deed, mortgage, advice, graphs and whatnot. I sent out 20 of them, and i did not get one single reply. I was as surprised as you guys would have been.

I have to be honest here. 80 calls off 250 is a fantastic result. If i could do that, i would be rich.

However, thats if it worked for my target audience. For hard money/ sub prime deals, i dont believe that i even WANT those deals. For me its a numbers game. In my first year of biz on my own down in florida , i sent out direct mail to EVERY homeowner. Thus i got calls from every tom dick and harry with every single situation possible.

I can tell you a huge difference here for my company.

I funded almost every app that could go conforming. The only thing at stake was MY sales technics, which included meeting my clients in person, marketing as the 'trusted guy in the community' , joining the chamber of commerce, better business bureau blah blah blah......

I have never lost one loan after i met them in person and signed them up. Why? because i met my clients in person, am the 'local guy' and i didnt try to make more than 2 points on the loan.

The ONLY problem i had was of course it was my first year and people didnt know who Davie Mortgage Group was . Quite often my mailers paid off as INTRODUCING myself to the community, not having them call me. The second, and third mailers started to generate more calls.

Sub prime was another story. Every single guy was more than EAGER to have me help them . But as the file went on, different stips, different docs and other follies popped up -as sub prime usually does. I was able to fund 5 sub prime deals ALL YEAR. One was a referral . I must have had 50 or so apps off subprime this year.

I can tell you that i spent WAY more time on those 50 apps than i did FUNDING the other 34 conforming apps. My first year produced 32 loans only due to the trial and error and whatnot of starting a business in a new state. However, those 32 loans produced 135k in fees. Higher than the 3k target i expected.

34 conforming apps - 27 funded loans . The 7 i lost were a combination of people 'rate shopping' and letting me take the entire app. Usually rate shoppers wont let me pull credit and just want the info. 7 of them played along thru the entire app.

28 subprime apps -5 loans . ALL subprime folks eagerly wanted me to do an app. However, this was out of 50 or so calls , and from talking to them, i declined a good 20 before i even pulled the app. Most of the reason why these 28 turned into apps was because they presented themselves as conforming people , all to find out that their credit was nowhere near what they said, and they had a pile of judgements etc.......

I tried my damn hardest to find these 28 people a loan that has a reasonable benefit to the borrower . This means that for the prepay and closing costs they have to give up, i must be putting them is a substantially better situation. This is where it became most difficult.

So when i analyzed my sales data for the year, I didnt have to be albert einstien to see what was happening.

Sure you can get TONS of calls off subprime, Tons of 'mini apps' but in the end, you CAN HAVE THEM , in my humble opinion.

Recently, i bought $7200 data from Site x data. It gave me all the county stats , lender, loan amount, type blah blah blah AND it gave me the AVM included
Thus i could scrub that data for the WHOLE county , and send out mailers to the audience i have that proves to FUND. Thats the bottom line.

I have big hopes that 2007 will be a much smarter and time managing year.

In a perfect world, we all would LOVE to have everyone who called FUND. This is what i am trying to accomplish to the best of my ability. Its about working smarter, not harder.

I would rather have 3 calls and 3 loans

than 25 calls ,12 apps, and finally after many hoops, 4 funded loans.

I would send out more mailers.

Just my .02

[amerieric]

That's a wonderful plan and system. To monopolize a brokers marketing needs all with one company. The broker will not have to leave your company and will be provided everything they need to become a successful broker. This is why with my live transfer lead working so well I won't have a problem referring some brokers your way, this is something we need to discuss further after the holidays. So I currently have 3-5 brokers that will try your service and hopefully the contract terms can be bent for those that are alittle skeptic.

let me know bro.

Your #1 Mortgage Leads Pro
Eric McClenon III
http://ericmcclenon.info/gcletter.html
mortgagepro2005@comcast.net

[carlo@CreditReportAtlas]

Originally Posted by florida man

Guys

good info . I am going to stick to the way i send direct mail, but i apprieciate the feedback and will try another batch of these ones.

When i first came to florida, i did try a huge package with the deed, mortgage, advice, graphs and whatnot. I sent out 20 of them, and i did not get one single reply. I was as surprised as you guys would have been.

Perhaps it was just a fluke , and I will try another batch.

That's great, Tom, and I do appreciate your honesty but even if you wanted our leads.. you wouldn't be able to qualify anyway. Our lead products are available to our credit reporting clients only. And with our credit reporting, we only deal with corporate accounts. It's very rare that we sign-up small shops and if we do they have to be able to pull a minimum of 10 reports per month and they have to be in a commercial vicinity, not a home-office operation, in order to be in-compliance with the FCRA requirements. 90% of all credit reporting agency has this requirement.

[carlo@CreditReportAtlas]

Originally Posted by amerieric

That's a wonderful plan and system. To monopolize a brokers marketing needs all with one company. The broker will not have to leave your company and will be provided everything they need to become a successful broker. This is why with my live transfer lead working so well I won't have a problem referring some brokers your way, this is something we need to discuss further after the holidays. So I currently have 3-5 brokers that will try your service and hopefully the contract terms can be bent for those that are alittle skeptic.

For sure! As a matter of fact, tell your brokers not to buy anymore leads. Just close 10 title with us and we'll give them 2,500 Mortgage Bureau Leads. Once again, this is the part of our business that ensures our clients that they are winning with us.

[florida man]

carlos

thankyou for the feedback. I appreciate your efforts. We have known eachother for a while now, and I have come to really like how you operate.

When i was still in ohio, as a newbie, my broker told me many golden rules. The best one i still fight with is:

..take the deals that will fund..........dont get rapped up in trying to fund EVERY deal.

I have had moderate sucess with this advice. ........ i find myself STILL trying to fund knucklehead deals. Its hard to let go sometimes, especially with a nice young couple with 2 small children, TRUSTING me to help them. I believe this is the only drawback to meeting my clients in person.

So, to SOLVE the issue, i have decided to ELIMINATE headache clients so they never get a mailer and CANT CALL ME. The less people i have to reject, the better my reputation.

lol.... i guess i am a 'wuss' ..........

[carlo@CreditReportAtlas]

Originally Posted by florida man

thankyou for the feedback. I appreciate your efforts. We have known eachother for a while now, and I have come to really like how you operate...

Thanks for the kind words, Tom. I figured the best way to keep a long lasting business is to make sure your customers are happy. 4-1/2 years in the lead business really drained me so I decided to change my game. Take a look at this thread and you'll see my true feelings about the industry.

so sad in my own island

Special thanks to all the forums out there and mostly MBL. It showed me the light and truly opened my eyes. The LO's are the customers and if we want them to keep coming back then we need to provide them a service that's gonna keep them coming back. Anyhow, read the thread above and every lead broker should read it as well.

[florida man]

carlos

thats great. I hope your venture goes very well. I always believed you were a smart fellow. I am GLAD you have changed to this new venture.....

cheers

[florida man]

I have a question

I hear all the time about these 'trigger leads' and THEN sending them direct mail.....

how old are the trigger leads ???? How much do they cost????

[jaybird]

Be very careful before sending out these deed of trust letters!! A girl who works for my company got in a lot of hot water with the Attorney General's office in the state of Pennsylvania after somone filed a complaint. They did not look kindly in this form of advertising. Run it through your state department before sending it out would be my recommendation. Be careful.

[Greg]

So many stradegies to consider. Who is right? All of you!

Ohio is not the same market as Florida. What you see down there we do not really see up here. The competition is fierce in FL. I think it is the #2 market in the US is it not?

When you lived in Ohio did you ever get a deed of trust in the mail? I have yet too but I have owned for only 3 years. If it is rare and unique in the market then it yields variable results.

I beleive him though. I beleive you too because about 50% of sub-prime apps close if you are lucky.

You are doing it right though. Pick and choose. How many times have you dug in and closed a sub-prime deal and they never speak to you again or get mad about the little stuff like they are 720 fico borrowers? They tend to want sonmething for nothing and scream irrational thoughts about you to everyone they know. grrrr...

Time management is taking the closeable deals and doing them quick. Getting more and continue originating. I like it FL!

Someone has to do the crap deals too though. Sometimes you turn poop into gold with the right direction. People sometimes have no clue because their parents did not tell them the ins and outs of credit or they just managed it poorly. Showing them the path of light sometimes changes them and you get customers for life that would do anything to help you grow.

Good credit folks sometimes do not have the same respect and appreciation.

It is a toss up. I choose to handle everything I get. I am scared about what will happen when they call broker b....