Archive for February 6th, 2010
Ten Ways To Generate Sub-Prime And Purchase Leads
No matter what the market environment, it is important to generate business from a variety of sources–both traditional and non-traditional. We all know that the refinance boom could end at any time, but how many of us are adequately prepared? How many of us are positioned properly to maintain our current standard of living? Would you be forced to leave the industry, if rates rose rapidly? These are questions worth looking at.
If the refi-boom suddenly came to an end, your phone would no longer ring off the hook and you would be forced to go after purchase, sub-prime and debt-consolidation loans. In other words, you are going to have to hustle to generate business. But, where will these loans come from?
Over the years, I’ve compiled some of the best methods of generating these types of leads. Here are my top ten:
1. Approach real estate “seller’s” agents. The holy grail of generating purchase leads. I’ve found the best sources to be the new agents who aren’t already working with someone. You can get a list of new agents who have recently gotten their license by contacting the appropriate State agency and asking for a list (you can find the date of completion there).
2. Approach real estate “buyer’s” agents. Harder to find, because most agents do both buying and selling. You want to find an agent who only represents buyers. The clients tend to be more loyal and open to using whom the buyer’s agent suggests for financing. It is best to specialize and promote your niche products such as 100% financing, interest only loans, and no PMI loans. Buyer’s agents usually know more about the client than seller’s agents traditionally do.
3. Conduct “first-time homebuyer” seminars once a month or teach a class at your local community college on home finance.
4. Contact the local non-profit and debt-consolidation help agencies and offer to help counsel homeowners or provide advice to those looking to get out of debt and into a new home.
5. Run small classified ads in the rental sections of newspapers and especially the “penny saver” small papers you find free at many business entrances.
6. Put “why rent” flyers in the mail and laundry rooms of apartment complexes in your city. Also, put them in local Laundromats and at drycleaners.
7. Target community organizations, especially inner city and business enterprise groups. Often times, entrepreneurs are looking for additional capital to start or expand their business. Not many loan officers have contacted them.
8. Don’t forget about the public and private schools. Many lenders have special first-time homebuyer programs just for teachers, with relaxed lending criteria. You can even get full 100% financing!
9. Contact moving and storage companies. People who have items in storage are predominantly renters.
10. Set up relationships with divorce attorneys. Splitting spouses will need to cash out the equity in the property…fast! Don’t forget about the alimony payments too. 
Don’t overlook the importance of establishing these types of relationships early on. You want to be in a position to take advantage of the opportunity when rates rise rapidly. Now, go out there and get more loans!
Learn To Invest With A Financial Strategy
Everyone now knows that buy and hold is probably not the best investing strategy, if that’s the only plan you have as an investor. Achieving gains over time means more involvement in choosing investments, but even more important is to learn to invest money using a defined iunvesmttnet strategy. This gives you a map for investing money regardless of market situations. It’s almost like playing a game; you only see results when the game is finished, and the winner appears. The use of an investing strategy, and a plan, is what eventually will separate the winners, over time, from the losers.
An investment strategy is simply a detailed plan for how you plan to invest your money using various types of instruments to help you achieve your defined financial goals in a specific amount of time. When you choose a particular type of investment, such as stock, or mutual funds, within that category are multiple options for individual investments for you to choose from. It’s similar to the way in which a clothing store sells clothes ? but the items for sale include of pants, shirts, skirts, dresses, accessories, and so on.
Unless you take time to learn to invest money strategically, you can easily get ovewhelmed with options for how to invest your money. Especially in a down market, choosing what will work short and long term is more difficult if you’re operating without a plan to guide you on strategy for a variety of market conditions. This is why it is so critical to have a strategy, because it will help you choose the proper instruments to further your financial goals.
For investors who are not very experienced in choosing stocks, a financial planner might be a good choice to work with. Working with a professional can help you put a finer point on what you need to accomplish your financial goals and complete your plan. For exmaple, they can help you identify your risk tolerance, your resources for investing, and the time horizon over which your investments can grow.
Always have a strategy and defined goals before you invest money. This is essential if you want to profit and grow your investments. Investing without a plan is just like giving your money to someone without knowing what that money will be used for, or when you might get it back. Learn to invest money by starting with a strategy, and you’ll see your financial accomplishments succeed.