Scotsman Guide - August 2009 Residential Edition

Tricks of the Traits for Lending Success
Personality and behavior characteristics often distinguish the best brokers from the rest
By Robert Nolan, president and CEO, IvyStone Consulting Group

When it comes to the business world, professionals with a specific set of personality and behavior traits often find the most success. Mortgage brokers should know what these are and strive to make them their own. In addition, when hiring, brokers can look for and identify these traits to choose the best candidates.

First, let’s look at the personality side of the equation. Some internal qualities tantamount to success include:

■ Passion: This is perhaps the most important trait a broker can have. Mortgage brokers must have passion for their business to achieve the highest levels of success. If you don’t love what you do, it will show.

■ Charisma: Top producers can build relationships, trust and rapport with their clients quickly. Charisma gives brokers who

operate their business based on relationships a significant advantage over those who operate based on transactional details.

■ Control: Top producers desire to maintain control of their style of selling. They understand that their style defines them and that losing control of that weakens their abilities. If they feel they need to change their approach, they do so methodically.

■ Confidence: The best brokers have complete confidence in what they do. Confidence comes with knowledge and develops as they become experts in the profession.

■ Character: Top producers understand the importance of character, which also can be thought of as reputation. As such, they commit to always performing at their highest level. They also know that building a strong reputation can take an entire career but that destroying one can happen in minutes.

Robert Nolan is president and CEO of IvyStone Consulting Group, which he started in early 2007. He has been in the mortgage industry for more than 15 years. IvyStone uses proven psychological assessments such as Myers-Briggs Type Indicators and QFS Consulting hiring tests to help management find the right candidates who will fall within a company’s hiring profile for loan officers. Reach Nolan at (770) 309-7199 or via e-mail at rnolan@ivystonecg.com.

Beyond personality traits, behavioral patterns also dictate whether a mortgage broker will reach the highest levels of success. High achievers possess five time-tested behavior patterns, as noted more than four decades ago in the Harvard Business Review and adapted here:

They like working on their own. 1. Top producers seek situations in which they can solve problems. They have a great desire to work independently and recognize opportunities to build their careers.

They avoid petty or routine work. 2. Once a problem is solved, they move on to the next one. Although taking loan applications may appear mundane, top producers know the value of information and view this task as essential to information-gathering.

They prefer to work with experts. 3. When they have an issue, top producers want to speak with someone who has the experience or knowledge they lack as quickly as possible. Top producers know their limits and understand their role. Some liken themselves to attorneys representing their clients before a judge. The stronger their case, the better their chances

of getting the deal they want. If they hit a roadblock, they don’t hesitate to call on an expert for help. If a deal is a no-go, top producers move on. Pushing too hard isn’t worth damaging their reputation.

They want concrete measurements of 4. their accomplishments. High achievers dedicate themselves to making a lot of money because they see financial gain as a measurement of their success. Money isn’t always the best or most important measurement, but it often results from doing something extremely well.

They set moderate goals. 5. Doing so, high achievers can maximize their feelings of accomplishment. Brokers who strive for impractical goals position themselves for failure.

When looking at personality traits and behavioral patterns in themselves or in potential job hires, mortgage brokers striving to reach the highest levels of their profession should consider these elements as they move forward in their careers. By learning from and working with the best of the business world, brokers can add their name to the upper echelons of the real estate finance industry.

The Key to Marketing: Product Knowledge
Diversifying? Starting anew? Knowing how to sell starts with knowing what you’re selling
By David K. Lal, president, National Real Estate Council

Marketing to today’s con- sumers requires a different skill-set than it did just a few years ago. Profits are attainable from services and products that didn’t exist then, and your clients are hungry for the modern real estate promise. It’s up to you to provide it.

No matter which marketing angle you choose, you must first understand the loan programs that are available from wholesale lenders that appreciate you as a mortgage broker. You don’t need to belly up to lenders that look at your business as a tolerated

38 Scotsman Guide | Residential | scotsmanguide.com | August 2009
nuisance, at best, and as nasty competition,
at worst. Support those that support you.
The first step is to reach out to whole-
salers and clarify their programs and prod-
ucts. They can change and often do.

Next, recognize that there is more to a product than rate alone. Often, rates from large banks will be less than those from smaller wholesale lenders for top prime borrowers. Don’t get hung up on this — spending an inordinate amount of time to compete for a rate-shopping borrower can be a colossal waste of your time. Greater success could await you on roads less-traveled.

Look at all available programs and rates from lenders. You may find that one wholesaler’s investor or second-home loans are more attractive than its than conventional projects. Jumbo or portfolio loans may offer attractive options, as well.

Work backward from there. Once you have found the lenders and programs you like, it’s time to create a strategy to find borrowers.

Use your imagination to create incentives. For example, you may find an attractive and competitive jumbo lender. Complete your due diligence to ensure it is reliable and then close a few deals.

David K. Lal is the president of the National Real Estate Council, a nonprofit organization. He is a licensed broker, frequent trainer and consultant to top-producing mortgage and real estate profes-

sionals. Mortgage brokers can join other real estate professionals in free conference calls twice a month to learn new strategies, marketing and market updates at www.nrecweb.org/training. Reach Lal at david@nrecweb.org or (888) 974-NREC (6732), ext. 1.

If you are satisfied, you likely are ready to incorporate this program and similar ones into your marketing effort.

Ask yourself the following questions:

■ Who are the ideal clients for this
product in your area?

■ Where do they live?

■ What do they need?

■ What questions do they have?

■ What can you provide?

Spend time thinking through and answering these questions. Then, develop your marketing plan based on the results.

You may conclude, for example, that your jumbo clients are established local professionals who live on the west side of town. They may want to reduce their rate and offset losses sustained in other investments. Market toward that.

To create a new market, target your primary group. Draw attention to the obstacles these potential borrowers face and provide the solution.

Ultimately, you want to woo your prospective clients by creating the need for them to reach out to you. Invite them to neutral-location seminars in local schools or libraries. Address the concerns they

might have about their finances. Provide information about and solutions to their concerns. Partner with financial planners, accountants and insurance experts to offer joint solutions. Point out new strategies and long-term options that incorporate the mortgages that you can arrange.

Your market share and profits can grow by leaps and bounds if you turn your attention to creating and cultivating relationships with consumers who aren’t solicited heavily and who have concerns that aren’t addressed.

Take the time to learn about products and services that will enhance your business and make you a specialty ser-vice-provider — rather than just another mortgage broker.