Just finished reading Tony Gallegos’ post (recommended by Todd) and it is good. Loan officers can benefit hugely by adapting a relationship-based business model rather than a transactional one. But what happens when you have spent your career doing just that and then the basis for your carefully nurtured relationships goes away?
This isn’t a hypothetical for me; my husband has specialized in high-end construction lending for twelve years and is the go-to guy for many builders here. He has busted his butt to earn his rep and now his entire business may be going away. Why? Because his employer has decided to get out of the construction lending businessat least temporarily (and while they must have some problems with construction lending in general none of Jeffs’ ever went sideways). So just go somewhere else, right? Except that he recently left a previous employer (who he’d been with for over 11 years) for the same reason — they got rid of their entire construction lending department so he had nothing to sell. These days there is no guaranty that any company will continue to offer the products you need to serve your niche.
So while waiting for cooler heads to prevail and product offerings to return, how do you prevent the erosion of relationships when you can’t serve your market? How do you keep old friends loyal enough to return to you when your company comes to its senses? Or do you just resign yourself to starting over in a different niche after more than a decade?
Any advice would be much appreciated. Neither abandoning another employer nor twelve years’ work is a very palatable option.
That’s a tough spot. Sorry to hear of your conundrum. I wish I had better advice, but just stay positive. If your husband is good and maintains the relationships by staying in regular contact, they’ll still be there. He just needs to develop a disciplined routine for maintaining contact.
Gina, that’s a lot to go through. And everyone in our industry is going through a similar degree of what you’ve described.
My advice is to prayerfully consider all of the options and do what is right. Not always the same as doing what is easy. Tough decisions.
Gina,
Failure occurs when you give up. Until that point, you have only found new ways of not succeeding. Though, if you maintain focus, you will succeed.
That being said, why not focus on relationships that are producing results right now. Every market has “it’s market.” At the end of the day, we are looking for people who need money and/or a place to live. Can you think of a time in history when those people didn’t exist?
I have a rock solid lead generation system that I use to cultivate relationships with high net worth clients and Realtors. I parlay that into relationships with Financial Planners and Life Insurance Agents. I have my Life Insurance License also. I don’t actually get involved in the Life Insurance case, though I do some preliminary legwork to get my past, present, and future clients to the Planners. When the case closes, I get paid a percentage of all Life Premiums that were sold. This is perfectly legal as I have my life insurance license.
So really what I’m looking for in a client is someone who needs money, a place to live, a retirement plan, and may eventually die.
Do you know anyone like that?
If you do, there is a fortune to be made in this market, the next market, and the next market.
Call me if you want me to walk you through this:
(540) 761-7868
I’ll be glad to help.
All the best,
Rob
Thanks Rob,
As a matter of fact, Jeff (working with a builder who he has a relationship with) picked up a couple of condo developments and will be the preferred lender there (several hundred units). The loans will be primarily FHA so he brought in another LO to help (the joke in the office is that Jeff can’t SPELL “FHA”). So he’s looking forward and finding new business using old contacts. That’s good.
Our concern is that the area where he has invested so much time becoming an expert and developing a reputation is one that he no longer has products for. The problem is taking care of people who rely on him and not losing them to the competition forever. He’s looking to find someone he can refer these clients to temporarily who won’t try to keep them for life. Perhaps by following Wayne’s advice and maintaining contact, then letting referral sources know when the programs come back will keep the business together.
Hope so and thanks everyone for your input.
g
hi Gina,
try to remain positive, i kno its hard but you have to. Look at the pluses, you may have lost your niche but your husband has developed alot of skills in his years in the construction side which he can easily turn to other industries. there is always a new niche evolving and there is no shame in leaving what youhave done for many years and trying something new.
He may even relish the challenge.
Anyway best of luck
Morty
I wouldn’t count on anyone being willing to watch over the clients temporarily. If you give something to someone, do not plan on ever getting it back. That’s just the way giving works. However, if he maintains once per month contact with these people, he will have a chance to win them back later on. I might send someone a postcard one month and the next month clip an article from The Economist or Kiplinger’s finance that I know would be of interest to them. Then sprinkle in a phone call just to see how the person is doing. If you use that strategy, the door will be wide open to compete for their business at a later date.
Yes, it looks like the relationships are still what will keep the doors open. And maintaining them is a skill that doesn’t go away even if the products do
So I guess I’ll stop worrying at least for a while. Thanks.
Gina, that's a lot to go through. And everyone in our industry is going through a similar degree of what you've described.
My advice is to prayerfully consider all of the options and do what is right. Not always the same as doing what is easy. Tough decisions.