Here’s the bottom line; No one will do a reverse mortgage with you unless they have an interest in it!   Or you are lucky enough to check in when they are having a life changing event. 

When considering a direct mail, telephone, seminar campaign, or other marketing effort, we often get side tracked and attention is deflected away from the list.  Why?  Most notably we get hung up on the aesthetics of the marketing material.  When in reality, if we focus on the wrong list, it really doesn’t matter what the marketing material looks like.  The most important part is the list.

My experience is most response related marketing services don’t truly understand the reverse mortgage business.  They get confused when you ask for equity versus LTV, they think in terms of anyone 62 or older will work, they don’t consider length of residence, or total revolving debt, and most notably can’t fully zero in on values.    Understandably,  these variables in our marketplace can be difficult, but not impossible when you go outside and actually deal directly with list and data vendors, whose specialty is exactly that, DATA.

Why deal direct with list and data providers?  Foremost, providing lists and data bases are what they do.  Secondly, once you purchase the data, always ask for the download copy of the data.  Thirdly, since marketing to the same data base over and over again, you are now in control and your cost for the really good data actually gets better the more often it is used.  For example, if you paid .25 cents for your data, mailed 10, 000 pieces as many as 4 times, then your actual cost for the really good data is not .25 cents per name, but .0625 cents, about the same you would have paid for if you purchased lousy data or got what you thought was free.

Remember, keep moving forward to stay ahead in reverse.
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            A model sells her beauty. A factory worker sells his time and his skills. A test pilot sells his courage and expertise. Even a ditch digger is selling something: His labor. The point is… you don’t have a choice about whether or not you want to be a reverse loan advisor , you already are one. Maybe, you’re not what is generally regarded as a pure salesman,  but, you absolutely do make your living by selling something. Again… all money is made by somebody selling something to somebody else.

            And… since this is true…

THE MOST IMPORTANT DECISION YOU WILL EVER MAKE AS FAR AS YOUR CAREER IS CONCERNED IS… WHAT IT IS THAT YOU ARE GOING TO SELL!

SELL SOMETHING YOU LOVE!

            Look, life is difficult. And business life is doubly difficult. On your road to success, you’re going to be dogged by envy, scoffed at for daring to be a dreamer, trivialized by those with less courage, pestered by bureaucrats, etc. In fact, in today’s America, I defy you to get out of bed, use the bathroom, get dressed, eat breakfast and go start your car without running afoul of at least a half dozen laws and regulations.

            The point I’m trying to make is, the business of doing reverse mortgages is incredibly difficult even under the best of circumstances and when you add this to toiling at something you find boring… you’ve got a combination that almost guarantees burn out.  Selling reverse mortgages is akin to a calling, “have fun.”

Rememeber, keep moving forward to stay ahead in reverse.

by Sam Collins

Have you ever considered the enormous burden you have as a reverse mortgage originator?   Because of the huge financial burdens being exercised on our senior homeowners today, there is an  equal amount of burden  being placed on reverse mortgage originators.

The reasons for burden are many.  The ones that come to mind  are the recent reductions in principal loan limits, then couple that with  reductions in home prices, you have a recipe for burden.    These facts are proven in the recent major reduction in reverse mortgage originations.  The burden for reverse mortgage originators is twofold:

First,  we are seeing more and more senior  homeowners not qualifying.  In fact, some are faced with losing their homes and  being left homeless, having to move in with the kids, or becoming a ward of the state (goverrment).   This  is changing the burdens on us and our clients.   This leads us trying to find more solutions for our clients.   Yes, you could just walk away when someone doesn’t qualify or you can take another step, such as trying to negotiate a short refinance.  But, this too adds a burden.  Time!  How do you find the time and if it doesn’t work, who will compensate you?    So the burdens are many, including financial and moral in nature.

  
Second,  because of reductions in the principal loan limits and deteriorating home prices, we are finding that less and less people are qualifying for adjustable rate reverse mortgages and the percentage of fixed rate reverses are the only alternative.  Burden vs solution.  If not for the fixed rate product many clients today would be losing their homes.   However, we are faced with a heavy burden, trying to keep objective with our product offerings.   It is a  dilemma we are faced with daily in our world as reverse mortgage originators. The burdens of our financial world today seem almost incomprehensible, with insurmountable financial pressures being applied to all walks of life.   However, less not we forget those who gave us the qualify of life we enjoy today!  Cannot there be  found the resources to assist our aging homeowners?    Where is the burden?

Remember, keep moving forward to stay ahead in reverse.

Check it out on Friday as the USA hockey team battles in the SemiFinals.

Could it happen again?

Click on the Video to get inspired!Miracle-Herb Brooks\” Pre-Game Speech

It has taken me a long time to realize that most of us accept our lives, rather than lead our lives.  Why?  Because the path of least resistance is always the easiest to take.  But, unfortunately, we all don’t get a second chance at success.

If you are proactive, you focus on preparing.  If you’re reactive you focus on repairing.

When you prepare:

• you  don’t make decisions because they are easy
• you don’t make decisions because they are cheap
• you don’t make decision because they are the  most popular

Begin to make your life better by determining to make good decisions.  Begin by narrowing down areas that will make you successful. 

Here are a few:

1. Attitude; reveal the right attitude daily
2. Priorties; act on the most important daily
3. Health; follow healthy habit daily
4. Family; put it at the top of your list, daily
5. Think; set aside 5-10 minutes daily
6. Commit; keep your commitments
7. Finances; manage your daily
8. Faith; have faith in something daily
9. Relationship; build solid foundations daily
10. Generosity; plan on giving back daily
11. Values; practice good values daily
12. Growth; seek to improve yourself daily.

If you can work on these 12 daily dozen and decide explicitly you will act in the right direction, then you can be successful!  

Remember, keep moving forward to stay ahead in reverse.
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Looking for Successful Members and Those Who Want to Be!
Free Member Call in Wed. 24th @2:00 EDT
go to home page, calendar of events and click on the 24th
to access!

I had just pulled up to the parking lot to meet my friend.  We had volunteered to do some chores at the soccer club.   We were the first to arrive.  It was a cold and rainy day.  As we sat in our warm vehicle, a car pulled up and a young lady, with soccer ball ran onto the field. 

Both my friend and I watched as the young lady went through self motivated drills.  She was juggling the ball, doing sit ups, crunches, and overall putting herself through the ropes.

My curiosity eventually got the best of me.  I got out of my car and went to find out more about this motivated young lady.  I introduced myself and told her how impressed I was with her and I wanted to know more.  She went on to tell me, she was home for a break and played women’s soccer for Yale.  She was working out to keep in shape and keep touching the soccer ball in order to great ready for a big game.  Wow!

Now I was motivated!  If only I could get my soccer team to have such an explosive and dedicated work ethic.  If there was only some way to make that happen?

I had no clue what the women’s Yale soccer record was that year.  I just knew I met a winner.  You too can be a winner if you dedicate yourself to be the best you can possibly be! 

So what does it take to be a winner on the “Hometown” RM team:
1.  You must be a self starter
2.  Make up your mind to stay in the game
3.  Be a team player
4.  Don’t be afraid to step onto the field that others won’t tread
5.  Set the benchmark for your success and don’t care what others think
6.  Work hard - but- work smart

No doubt many of you are winners now.  But remember, being a winner today does not necessarily mean tomorrow is a guaranteed success!  It’s called competition. 

Winning is an attitude!  Winners take success  to heights beyond what others are willing to give!

Remember, keep moving forward to stay ahead in reverse.

NOTE:  REMALO member call in Wed. February 24th.
register log in to remalo:  http://www.remalo.org

Have you ever noticed politicians when they talk?  They get asked questions and rarely if ever do they answer?   In most cases, it’s not what you say, but how you say it!  The best communicators are similar to politicians, but in our case, hopefully what we say will be meaningful, educational, and show compassion with true understanding for the things on our seniors minds.

So it is when you begin your communications with your senior prospects. 

So, you want to start  the conversation with uncovering the hidden stuff…
*        Consider asking open ended questions, you ask, they talk, and you listen. 
*        Take notes during the questions and use them to understand
*        Listen intently, do not interrupt
*        Begin your conversation with, “Tell me about…”

You must consider the same question will get a different response from different clients; there is no right or wrong answers.  Your job is to listen intently to how the answers that are expressed.  Make notes for current and future reference.

Here is a list of control/action verbs that your seniors will appreciate when working with them:
Choice, control, create, decide, elect, embrace, guide, handle, lead, maintain, manage, option, organize, pick, plan, select, take action.

Using these words in a positive manner will add security and comfort to your senior clients.  Remember, seniors are especially concerned about their lives  and resist giving away anything to anyone who hasn’t earned it.

So, you need to know what to say and how to say it.  I have lots of ways to say things, all tailored to different situations.  Most seniors have different backgrounds, history, and opinions; you can’t come up with just one shoe fits all solution. 

Below are just a few How to Say it’s:

“Mr. B, tell me, what concerns you most, since you have retired?”

“Mrs. H, tell me about, where you grew up and the impact that has had in your life today.”

“Mrs. S, thank you for your inquiry, but before we begin, I would like to know about you, do you have time now to talk?”

“Mr. S, tell me about  what do you think is the biggest challenge facing you in daily life?”

“Mr. J, do you consider a legacy important and have you considered how that legacy will be shared.”

“Mrs. S, tell me a little about what you did when you worked full time?”

Once you understand the compelling underlying issues, concerns, and mindset of your senior prospects , then and only then can you consider a positive dialogue.  You need to know everything you can.

Remember, keep moving forward to stay ahead in reverse.
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REMALO member call in, Wed., February 24, 2020 @2:00 PM EDT.
Log onto REMALO, go to calendar, click on the 24th for access.

I can’t help but tell you this story about Ms. P.  

When I met her, she was very timid and scared.  She told me things were good about 2 years ago.  She and her Mother lived together and things were going along just fine, until unfortunately her Mom passed away.  When that happened Ms. P saw the household income shrink by over 50%.  

Ms. P for the past 2 years was sweating every month, while her credit card debt kept growing larger and soon the payment were getting higher.  After 2 years the wheels on the bus were starting to unravel.  The credit card company froze her credit card limit,  pumped up the rate, and there you have a disastrous financial position, which could lead to the  possibility of the loss of her home.

Ms. P and I worked out a cash flow budget and soon we saw the problem.  Ms.P was going negative cash flow $500 per month, hence growing credit card debt.  Ms.P said she had looked for a  job to supplement her  shortfall, but no one would hire her.  You see, she was missing quite a few of her teeth and was very self conscious of her appearance.  Hence, she lacked confidence during her job interviews. 

Fortunately for Ms. P, she and her Mother had paid down the mortgage, so she had equity and was able to do a reverse mortgage.

Today, her loan was funded.  She came into the office and  was singing our praises.  She was one happy lady.  She said the first thing she wanted to do was get an appointment to have her teeth fixed.  (isn’t that great!)  Next, she was going to the bank and pay off her high interest credit card. 

Ms, P, said this past week was the first time she has been able to sleep for over a year without having to wake up wondering how she going to feed herself and pay her bills.

Yes, there are still some great stories.  Let’s hope we can continue to spread the missionary work!

Remember, keep moving forward to stay ahead in reverse.

by Sam Collins

Yesterday, we spoke about the lead funnel.  Next we are going to talk about conversion.  Today I had an opportunity to speak at length  with a lead provider.  He told me his company is still producing rm leads, however, the low hanging fruit leads are not as plentiful, so the sales cycle is longer and the methods of conversion are more important now than ever, which leads me on to our main topic.

Lead Conversion

Realization:  no matter where your leads are generated from, you are not the only person trying to sell to the “hot” leads.  Remember the need for leads is greater than the supply, so it is common sense to recognize two or more persons may be working the same lead to win the senior client’s business. Yes, you need to be real good to survive in today’s market!

Here is the building block strategy for you to take away.  Treat each and every senior prospect as if they were already your client.  There is no way to gauge how much a prospective leadis worth in the future.  Why take risks with potential dollars?  Understand that leads are only worth the originations that come from them.  But, in senior marketing, you never know when the origination will occur.  Remember, your senior client’s are working on their schedule, not yours.

Converting the Funnel
 
The secret to lead conversion mastery is dependent on your ability to execute faithfully.  I know you have heard it before; however, the secret is really no secret at all.  To master the funnel you must master follow up, which leads to conversion.  When you choose to execute follow up, you are committing to interacting with your senior client.  In order to interact, you must have a message and a reason for your client to really get to know you and interact with you.   

Many of you are probably using the old fashioned method of follow up.  Maybe you are using a file folder system, a notebook, sticky notes, or the “I’ll remember to call them back system.”   If you are still using the latter and it is working for you, then keep doing it.  However, even the brightest and most knowledgeable of originators find it impossible to remember all their “non-active” clients.  Why, because in order to keep your pipeline full, your business requires many potential clients, because our client is not on the same schedule as us. 

Establishing a consultative follow up system requires patience.  However, to keep track of it all requires you use some form of technology.  Yes, you need some form of automation to keep up.  If not, you are going to do three things; one, continue along the same old path getting the same old results; two, drive yourself crazy;  and three, continue to lose money on unconverted leads that slip through the funnel and eventually go to your competition.

The old days of just picking up the phone and getting an appointment are gone.  Oh yes, you might get lucky here and there, but this business in not for the faint of heart, its hard work and smart work.  The arena of competition has proven they want your business.   So, don’t immediately think your senior prospects doesn’t have choices and don’t think they immediately see the value of you and a reverse mortgage.

Your senior client wants to be shown not told.  To establish the value and relationship your senior client needs to know exactly what they will be receiving and exactly how it is going to impact their lives.  It’s not about you, it’s about them. 

Bottom line, if you fail to move your prospect through the funnel, you’re not going to get the opportunity to make money.

Remember, keep moving forward to stay ahead in reverse.

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Last Call.
Today, this  AM is your last opportunity to join our Lead Extravaganza event.
To see what it is all about:  http://www.remalo.org/public/731.cfm

by Sam Collins

Critical to your success in the reverse mortgage business is gathering leads.  This gathering of leads, sorting and using lead information is necessary to begin interaction with your senior prospects.    This process is called “Filling the Funnel.” 

You see, leads are a powerful resource to have. Today’s leads are tomorrow’s origination, or next month, or next year’s.  Therefore, it is important for you to understand the importance of your leads. 

One important concept as an originator is the ability to create a workable senior prospect database.  This database enables you to market to your prospects now and in the future.   By putting your senior prospect leads in your database, you are securing a lucrative future for business, originations and ultimately referrals.

The more senior prospect leads you have in your funnel, the more originations you’re going to have down the road.  Why?, because you have the list and you are going to devote yourself to be constantly standing in front of them.

What is the Price of Lost Leads?

What is the ultimate result of a loss or discarded lead?  There is only one answer to that question.  You will have to seek out more leads.  And thus, (if not corrected), the process will begin again.  Yes, you’ll pour more money into purchasing leads, make the quick originations, loose or discard the lost and if you are not careful, the process repeats itself again and again. 

In this process, not only are you spending more money in marketing efforts, but in purchasing more leads, but you are leaving thousands of dollars of profits just sitting on the table.

Let’s do a quick calculation.  Let’s say you are spending $5000 per month on marketing for leads and you are able to generate 50 leads.  Of those leads you generate immediately 5 originations,  you gross $20K in origination fees and you feel pretty good.  After 12 months you haven’t done too badly, but what about those 45 X12 or 540 leads that were left on the table.  Let’s say ½ of your leads or 270 were not qualified, but the remaining 270 had a chance, and you were able to close another 5% or 14 originations, which resulted in $70K of additional originations.   Had you thrown the leads away or lost them, that additional income would be lost, and the business would have most likely gone to your competition. This is certainly something you cannot afford let happen.

Solution:

Follow up with my Stale Lead Campaign.  Now available to you as a bonus just for attending our Lead Extravanza this Wednesday February 17th.

Click here to register:  http://www.remalo.org/public/731.cfm

Stay tuned tomorrow when we cover lead conversion techniques.

Remember, keep moving forward to stay ahead in reverse.