Why Are You Leaving Money on The Table
I am very curious as to why you would leave money on the table. Why would you even consider turning people away that need your services? Why would you let an opportunity walk out the door? After several hours of pounding on my head trying to figure this problem out, I came to the conclusion that you and most other people simply have not thought about all the ways to make money. I am hoping to shed some light on the situation for you.
I know of several brokers and agents all over the country who try to focus on one aspect of business. They just want to do short sales or just do loan modifications. Very few of these people are making enough money to support their families. Why is this? It is because they can only help a small percentage of the people they come into contact with. Don’t you think it would increase your income if you have a solution to the problems of 90% of the people you meet with verses 20%? I know exactly what you are thinking, “of course I would make more money but I don’t know what other service you are talking about”.
What I am talking about is a process of elimination with every potential client you visit with. Would you close more deals and make more money if you were able to take any client and walk them through a process of elimination until you found the solution that works for their particular problem. Of course you would close more deals. Look at it like this, if you had a client that walked into your office and wanted to refinance, how would you handle that deal? You would first look up the value to determine if they had enough equity in the property to refinance. In most cases around the country right now you would find that they did not have enough equity to refinance. What do you do now? I bet you are like most other agents and that is to flip them to a short sale or modification. Why not see if you could get them a short refinance? If they have not yet fallen behind on their mortgage you should have a 55% chance of getting them a new loan and getting their balance reduced to 90% of the current market value.
If the client does not qualify for a short refinance then go to a modification or short sale. Yes I know a short sale makes you more money on the deal but it takes 3-4 months to get a short sale done. A short refinance should be closed in 45 days. You could close 2-3 more deals per month if you offered this option and bring in an additional $5,000-$10,000 per month. I know this works because I am doing it myself. So again I ask you, why would you leave money on the table?
Let’s look at a sample process of elimination you might want to consider:
Short Refinance
Loan Modification
Short Sale
Debt Settlement
Credit Restoration
Some of the other others you need to consider are:
Commercial Loan Modifications
Rental Negotiations
Do you have any idea how much money you can make off of one commercial loan modification? Commercial loan modifications are a different animal all together. The pricing structure is mush higher because the return for the property owner is much higher. Let’s say the property owner has a loan on the property for $4,000,000 and a payment of $27,008 at 6.5%. You get the property owner a modification and drop the rate down to 4% and get the balance reduced to $3,500,000, this would reduce the payment down to $18,474 for a savings of $8,614 per month. You would charge 1 point of the original loan amount for an income of $40,000 or 6 months savings for an income of $51,684. Now you see why it is important for you to get involved in some of these other areas.
These are just a few of the areas you could be using to MAKE MORE MONEY right now. You need to diversify so you can help more people. The more people you can help with their problems the more money you can make. Don’t get caught in the trap of narrow mindedness and lose sight of opportunity. Get out there and learn how to make the money you deserve.
