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Free Report by Jon Esposito, |
Index  Spotlight Article Misc - Mortgage |
| Have You Heard About The Silent Mortgage Boom? |
| October 09, 2007 | ||
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Have You Heard About The Silent Mortgage Boom? (Hard Money Isn’t a Hard Sell – Private Money Is Even Easier) By Pete Brady, President, One Touch Lending and 1Million Liquid In the first of a three part series on “The Fast Growing Mortgage Niche” that everyone’s talking about, we discuss new opportunities emerging in an exciting, yet forgotten market. Have you heard about the “Silent Mortgage Boom?” No…this discussion isn’t about Reverse Mortgages. Today’s turbulent secondary mortgage market has created a widening, underserved gap in the area of high rate, high fee loans. For the originator to who can quickly reposition themselves, presenting expertise in “hard money” lending can create a boom to your business. Hard Money Isn’t a Hard Sell – Private Money Is Even Easier
Most originators know what “hard money” is; yet, most originators haven’t sold these loans before. Let’s rename the loan to facilitate an easier sale and re-examine it’s applications that satisfy our client’s needs for cash. First, how are we to sell something that’s called “hard?” That would be like Ford Motors naming the Ford Escort, compact sedan, “The Tiny Gutless Rough Ride.” Let’s call our chosen mortgage niche “Private Lending.” It’s sexier, and it works. Second, if you think that the only use for these funds that you want to sell at prime plus 7.0 is to bail out a foreclosure, you would be mistaken, missing plenty of business. I learned long ago, there is always a demand for money, we just have to identify it and conveniently satisfy it in a way that is justifiable and palatable for our clients. A Private Lending Business Model Offers More
Private Lending appears to require much less of the traditional kind of referral relationship building efforts that typical originators focus on to build their businesses. To create and maintain relationships with Realtors, attorneys, financial planners, etc. is a very labor intensive process…at least it was for me. If you listen to other trainers, they will tell you that they have spent an entire career scheduling a different Realtor for a lunch date every day of the month! I just don’t have that much to say to Suzy Q. Agent and her friends each and every day of my career.Flexibility – If That’s That What You Want This type of “strategic schedule” seriously detracts from the flexibility that attracted me into this business. If handing out rate sheets and doughnuts at broker opens and smiling with your tie on at association meetings and was never appealing to you, then perhaps you should consider this discussion when making your next business plan. How Do I Get Started?
There are several ways to get started in this niche. If you are a confident “investor,” begin your Private Lending business planning by aiming at the “end game,” as I describe it. This is a dynamic business model targeted straight at putting you in ultimate control of your target destination – early retirement - and a comfortable, consistent cash flow. If you don’t have much investment experience, or you are just starting your investment portfolio, begin your Private Lending venture by just getting your feet wet. Many avenues still exist to start small & slowly. In our next discussion, we’ll cover the fast track approach to this business model and we’ll discuss ways to just get your feet wet. (This article is part 1 of a 3 part series. You can read part 2 here .) Pete Brady is President and co-founder of One Touch Lending. Pete and his partner have over 35 years of combined lending experience, which they have applied to develop an elite team of mortgage consultants who concentrate on residential financing that can hardly be considered "Plain Vanilla!" They love to teach their associates the compassion required to help people with extra special circumstances when financing their home. OneTouch Lending is a group of specialists concentrating on financing credit challenged borrowers and making their dreams of home-ownership & financial independence a reality.
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