Why HECM sales strategies are valid, even if they don’t work in your market
There are niche marketing strategies that some originators are using to generate several applications each month. However, some originators have not seen results from the HECM for Purchase (H4P) or networking with financial professionals. Does that make these marketing approaches invalid?
4 Comments
Shannon, your message this morning was EXCELLENT!!!
Owen Coyle
Shannon,
You hit it on the head, one size does not fit all and ones personality is very important. One does need to match the two together.
The H4P program has a lot of potential, but here again, one needs to fully understand the real-estate brokers and their agents make up. Knowing how to approach the realtor is the key to being successful. Never go around the broker directly to on of the brokers agent, that is a big no, no!
Get to the broker, sell the broker on the concept, then set up with the broker a time that you can present the H4P program to all his or her agents.
Wise presentation on your part today Shannon,
John Smaldone
Thank you John. Match-making our personality and skillsets to marketing strategy is something each of us can easily overlook.
I guess I have a different view on the matter.
Yes, individuals do exist who are originating H4P loans and individuals also exist who generate referrals from financial planners.
But if the realtor strategy is so successful for the H4P then why are so very few H4P loans originated?
Likewise, if the financial planner referral strategy is so successful then why did Reverse Mortgage Daily’s recent article titled “Data Confirms That Reverse Mortgage Borrowers Have Little Wealth Outside Home” expose the fact that the large majority of HECM borrowers have no wealth outside of their home equity?
If the large majority of individuals who obtained a reverse mortgage have no wealth outside of their home equity then clearly those individuals were not referred by their financial planner.
We know this because if a person has no wealth outside of home equity then they do not have a financial planner.
There is no logical argument that can be made against the fact that the H4P and the financial planner referral both represent only a very small percentage of the HECM loans that are originated.
Having said that;
If we know that there is such a very minute number of H4P loans originated and that financial planner referrals represent an extremely small percentage of the HECMs that are originated, then why do these 2 topics receive so much media coverage?
One would think that the media sources that promote our industry would place the most focus discussing topics regarding marketing strategies that have proven to be the most successful at originating HECMs, right?
What I don’t understand is why do the media sources that promote our industry place so much focus on the H4P and the financial planner referral marketing strategies when they have both been proven to be the least effective at originating HECMs?
Why is that?