Blog Post #15 REALTOR PRIMARY REFERRAL TARGETS

REALTOR PRIMARY REFERRAL TARGETS

Let’s get focused.  Let’s start talking about the Core7 Primary Referral Targets.  Can you talk about the Real Estate Agent’s targets?

 MM:  Absolutely.  The Realtor’s two primary targets that they are supposed to focus on are the Mortgage Originator and the Real Estate Attorney, or Escrow Officer in certain states.  Real Estate Agents have the unique ability to make this introduction every time because number one, the buyer needs a mortgage professional to obtain a loan, and number two, they need a Real Estate Attorney to represent them to do the Purchase and Sale and structure everything. 

 Now what’s really important is that the Mortgage Originator is introduced by the Real Estate Agent as early on in the process before they find a house. This should happen in the Buyer Meeting.  The most important thing is that the referral is made before the client purchases a home so in the Buyer Meeting you want to refer the Lender so you can get Pre-Approved.

 JB:  That sounds really good.  I know that in the Core7 Realtor modules, the Buyer meeting is explained in great detail.  So how do you make this introduction; do you do it by phone or email?

 MM:  The best way for the Core7 Realtor to introduce the client to the Loan Officer is by email. 

 JB:  Can you read the email?

 MM:  So this is what my Core7 Realtor will send to his client with me on it.  He’ll say, “Mark is the Lender I refer.  He takes a Mortgage Planning Approach to find the best mortgage structure to maximize your tax benefits.  He is going to reach out to you to set a time to discuss your options.  He gets all of the documents required by the secondary market up front and he will be a tremendous resource for you.”

 JB:  That email I think nailed it.  It makes the introduction and instructs the client on exactly what they need to do for docs and what to expect, and most importantly puts the responsibility and expectation of the follow up into the Loan Officer’s hands.  It’s perfect. 

 So, talk to me about the Real Estate Attorney.

 MM:  Okay, the Realtor refers the Real Estate Attorney immediately after the Accepted Offer.  This way the Attorney can introduce themselves to the client and build rapport before the Purchase and Sale, therefore keeping the whole team in place.  At this point, the Real Estate Attorney has the opportunity to create a lot of trust between the client and the team. 

 JB:  The attorney plays a big role at this point and collaborates very closely with the realtor.  It’s critical to make this intro. 

 MM:  Absolutely, the Realtor has a very important responsibility to control the relationships and the contacts up front.  This will make the process flow very smoothly and keep everything organized. 

 REALTOR SECONDARY REFERRAL TARGETS

JB:  Okay.  Let’s review the Secondary Referral Targets for the realtor. 

 MM:  Great.   The secondary referral targets for the Realtor are the Financial Advisor and the Property & Casualty Insurance Agent.  Now, just to note, in the Realtor Module, we show how the Realtor should bring up the Financial Advisor in every Buyer Meeting.  You know, just by mentioning the Financial Advisor, it makes it easier for the Loan Officer to make the introduction because the Buyer is expecting it. 

 Typically, if it is not mentioned it could come off as an unexpected surprise and the conversion when making the introduction is not as high.  The rule we use for the Core7 Realtor is that if the client is more than 3 months from purchasing a home, the Financial Advisor should be introduced by the Realtor.  If it is less, the Realtor should introduce the Mortgage Originator.  

 See, we believe that in many situations the Financial Advisor should be the first contact to discuss how real estate fits into the client’s overall financial plan.  For example, to review which accounts are best to take the down payment from based on the tax benefits, maybe to set up a savings plan or to handle many other financial decisions that should be considered at this point.

 JB:  So naturally there are going to be referrals to the P&C Agent that would come up when a client is working with a Realtor, right?

 MM:  Absolutely, so the Property & Casualty Insurance Agent is best referred by the Mortgage Originator on a purchase loan because they have the insurance binder language that they can pass on.  However, many times during the process the Real Estate Agent makes the introduction in their Buyer Meeting because it just comes up naturally.  That’s why it is a secondary referral target. 

JB:  So in the Mastermind Groups, what questions are specifically asked of the Realtor?

ACCOUNTABILITY QUESTIONS FOR THE REALTOR

 MM: 

1. How many Buyers and Sellers are you actively working with that haven’t purchased yet?
2. How have the referrals to the Loan Officer gone with each client?
3. How many referrals have you given that have gone under agreement or closed in the last month?
4. How did the referrals go with the Real Estate Attorney on each of those closings?
5. How was the referral conversion for the Mortgage Originator and Real Estate Attorney on these questions?
6. Any other referrals?

 This would be where we’d address the secondary referral targets and it’s for tracking purposes only. 

 JB:  So the thing that I’ll emphasize is that all of these questions, other than the last one, are focused on the primary targets and how the accountability is there.  

 MM:  Absolutely.