Posted by David Butler on May 23, 2007 at 23:52:28:
Mortgage brokers are often a great lead resource for note brokers - if they have an understanding of the private cash flow market, your role in it… and a cordial relationship with you.
I have always been mystified by the question “What is the best way to approach them?” however, as it applies to anybody you are trying to reach. It is not clear whether you are inquiring about the possible methods, the possible message, or both? We’ll come back to that down below in a moment.
In the meantime, if you have communicated your message effectively to all of your referral sources - the actual referrals themselves should generally be note holders, right? If not, you did not communicate effectively to your source about what you are looking for; the source did not understand your message; or the source was lazy when referring the person to you.
As to how you will know whether or not the client has a note to sell - you follow up with them and find out! Your referral source doesn’t do the information gathering for you in total. In fact, much of the time they will offer you very little information - but it may be a warm lead nonetheless.
As to why they would send you business and how? Let’s deal with the “how” first. There are only two ways for the “how” of it, so far as I can ascertain. Either the referral source will contact you and give you contact information for the warm lead; or the warm lead will contact you from the information your referral source (in this case a mortgage broker) gave he/she, in referring them to you. How else would, or could, the “how” occur?!?
As for the “why” of it. Could be several reasons, but the most intelligent, and most probable in most cases, will be what is called “enlightened self-interest”. That can mean different things to different people - but whatever it is, for whomever it is - forms the basis of building your network of referral sources.
In the case of mortgage brokers, it can often be as simple as “This is what I do (explaining your role in the note business in your 30 Second Elevator speach). In the course of marketing for my business, I frequently encounter people who are looking for loans. I am happy to refer them to you. I would appreciate your doing the same for me, if you encounter people who are holding notes they need to sell, or people who are looking to purchase a property, but are unable to qualify for any of your loan programs.”
There are many other incentives, and scenarios that may come in to play, but the above is a relatively easy-to-understand “everyday example” of basic “tit-for-tat” referral marketing tactics.
As you study marketing, and more particularly note business marketing, you’ll grow into many variations, and eventually focus on the ones you determine to be most effective FOR YOU.
Good Hunting, and…
Have Fun For A Living!
David P. Butler