In his great military treatise, The Art of War, Chinese general Sun Tzu laid the plans for victory in any battle. Whether you’re a real estate investor, a top salesperson or anyone who goes to work for a living, we are all on a missions field. To be ready for that mission on a daily basis, there is a certain amount of preparation that must take place in order to be successful. In addition to being a full time real estate investor, I also consult in the mortgage business as well. To that end, I continually work with each member of my team in the area of preparation. Every phone call that is made is part of the overall sale that occurs in every deal. To look at it any other way would lead to the possibility that you are taken by surprise at any moment. Let’s face it, there are thousands upon thousands of mortgage reps, loan officers and real estate investors who are vying for the same business as yourself. That’s not to say that there is not plenty of business to go around but it is to say that you can be replaced very quickly if you’re not doing your job at the highest level possible.
The amount of work that goes into the preparation for a phone call far exceeds the amount of work that the actual call itself may contain. Case in point, one of my mortgage trainees recently came to me with a deal and told me that we had two options for the client. One of the options he perceived to be a fairly strong one supporting the fact that the client should continue along the path of doing a refinance with us and the other option was that the client was looking into doing an equity line of credit with his own bank, meaning that the trainee would be losing the deal if the borrower chose the second option with his own bank. My loan officer saw the situation as a black and white proposition, one in which he could be a winner or a loser. However, after I asked him just a few questions about the deal, I saw a much different picture. Not only was there an opportunity for us to present the client with a total of five very different scenarios, but also there was an opportunity for us as a mortgage company to be involved with all five creating a winning situation for us and the borrower regardless of what avenue he decided to go. Rather than bore you with the details of the deal, I would rather examine some of the questions that I asked the young loan officer in order to shed some light on the investigative thought process. Being that the deal was a refinance involving cash back to the borrower, I asked exactly what the cash was being used for to which the trainee said that it was capital to help build the borrower’s business. I asked what was the borrower going to buy with this capital and the trainee did not know exactly what equipment or supplies it was going to pay for. That told me immediately that the he hadn’t gotten into enough detail with the borrower about his business. You need to know the details of what it is that your client actually does rather than just a superficial knowledge of his occupation.
Secondly, I asked how long the borrower was going to be living at this location, to which the trainee said that he would be in the home less than three years. I asked him why the main option that we had for the borrower was a 30 year fixed mortgage when the homeowner was out of the house in a few years anyway. We could easily present an option with an adjustable rate much lower if that were the case. Finally, I inquired if it would be possible for the borrower to close on our mortgage and in addition, also get the equity line of credit from his own bank in a separate transaction later down the road. The trainee said that yes, there was the ability for the borrower to do both if he wanted. The bottom line is that we were able to uncover a handful of new options in fifteen minutes of really examining the deal that before he had not uncovered. When the borrower was presented with this new outlook on the deal and it was no longer an either/or situation, he decided to do business with us because he saw a different picture. In every battle, just like in every deal, there are always multiple angles from which to approach. The question is what angle are you watching the war from? For more information on how you can create better options for your business, contact firstname.lastname@example.org for information on our mentoring programs.
Biography of David D. Oswald:
In addition to being a full time real estate investor, David D. Oswald is also a licensed mortgage solicitor, life insurance producer and title insurance producer in the state of New Jersey. As a founding member and currently a consultant to MortgageNow, Inc. (South Plainfield, NJ branch), David first began his career in the mortgage industry in the early part of 2002 during the major refinance boom that lasted until 2004. “I remember when I first started in the mortgage business that I had three trainees who were able to cold call and pull me as many as four or five complete applications each per day,” he explains. “It was exciting to be able to pump up your pipeline with an additional ten or twelve apps a day.”
It was also during that time in 2002 that he bought his first piece of property. “I loved the mortgage industry,” he says, “but I knew that there was something about real estate that attracted me for the long run.” He began traveling extensively throughout the United States over the next three years to educate himself on all aspects of real estate investing. It was during that time that he invested in everything from single family rental homes to raw land to tax lien certificates. Soon after, he started buying pre-foreclosure properties and focusing primarily on the wholesaling side of the business, working with as many as eight to ten properties at a time. David is currently in the process of growing his wholesaling business and branding himself and his real estate companies on a national level.
On a personal note, David is a member of Evangel Church and considers his faith to be the most important aspect of his life. In addition, he enjoys long distance running, playing basketball and reading a few books per month. He is in the process of writing two books, a fictional novel based on his experiences in the mortgage industry and a book on building your business using biblical principles.
For booking for speaking engagements or for mortgage or real estate business consulting, contact email@example.com.