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Market where they are
Now that we better understand what millennial buyers and investors are looking
for in homes, it’s time to focus on where to find them. As a loan originator, how can
you put yourself out there where your best prospects are looking? In what ways can
you tap into millennials’ best technological resources to gain trust, build authority
and earn their business?
According to a survey by the National Association of Realtors, 42 percent of people
buying a home begin their search online. It is safe to say that number is even higher
among the younger generations. It stands to reason that millennial investors also will
use online resources to find the best loans as well as the best investment properties.
Target millennials where they work and play. Use native advertising on the search
engines. Share valuable information on Twitter, Instagram and Houzz (an online community devoted to home improvement and interior design) to establish trust and
build name recognition as an authority in the field.
In addition, you can write blog posts and other online content that seeks to answer the most frequent questions of young investors. Don’t forget to include a call
to action at the end of each article so potential clients know how to reach you
when they are ready to begin the loan process.
Communicate like they do
To best relate to this demographic, you must be willing to communicate in unconventional ways. Your business relationship may begin
with a text rather than a phone call. You may even connect with an
investor looking for a loan through a Slack channel. If you don’t
know about this online collaboration tool, learn about it now.
Millennials move fast. You can secure their business by being ready when they are and willing to communicate through
the most expedient methods, whether that’s through a public
tweet or a private message on the latest, greatest app.
This generation is demanding, but they will reward your responsiveness by becoming loyal clients and recommending
your business to friends and colleagues — on social media, of
course. It’s not just about the money to millennials; it’s about the
relationships they form and the quality of life you can offer them
by proving you can get the job done on their terms.
A lender who can offer high-tech, customer-centric communication and minimize paperwork throughout the process can — and will
— win repeat business from millennial investors.
Be the lender they want
Finally, once millennial investors have found a prime investment property, they
will want to close fast. Although buyers over the age of 35 report that low mortgage
rates are most important to them, millennials have expectations that transcend the
bottom line. They prioritize finding an originator who is willing to work to meet their
terms, stays focused on customer service and responsiveness, and has a variety of
loan products to fit their needs.
“Flipster” investors are likely to seek a mortgage originator who can find a balance
between the lower interest rates of conventional lenders and the speed of closing
that hard money lenders can provide. An originator who can offer speed and certainty of closing, along with a high-tech paperless loan process and competitive interest
rates, can provide millennials with the service and experience they want.
In a sea of hard-money lenders, a customer-centric approach to lending that views
each millennial investor as an individual will rise above the rest. n
Michael Miller serves as chief marketing officer of 5 Arch and its parent
company, 5 Arches LLC. Prior to this, Miller was CMO of Epsilon Agency
Services and managing director of Catapult Marketing. He also co-founded
Hyper Marketing, which was later acquired by Epsilon. Miller has developed
global marketing platforms across brands, including JPMorgan Chase,
Union Bank, Wells Fargo, Google, Intel, GM, The Home Depot, Lennar and Tishman Speyer.
Reach him at firstname.lastname@example.org.