$1 MILLION PER YEAR LOAN ORIGINATOR

I once heard a radio news report that the average owner of a Lamborghini earned a $1MM per year and/or had the net worth of $5MM. Having been a exotic car fanatic since a young boy, I now had my goal. As Napoleon Hill coined it, I had my "burning desire." The wheels were in motion.

When I crash landed in the mortgage industry back in 2001, my first employer told me that if I wasn't earning at least $10K per month, I should find another job. Any thing less would not be worth the emotional pain one suffers as an originator; and if you weren't making at least $10K per month, you probably were not a very good originator. You can argue both points, but you understand the concept.

It took me 6 months to hit my first $10K month. Another year and I was at $20K+ per month, and so on. I never considered myself a natural sales person, and I am far from brilliant. I graduated Washington State University (Go Cougs!) with a criminal justice / sociology degree, and ran health clubs for 8 years prior to life as an originator. I was motivated to succeed, or not to fail; and was smart enough to know that I could make up for all of my weaknesses and deficiencies by out working my competition. And I did. More accurately, I am; as this is a journey I am still on. Although time is your most valuable asset, and your plan must be scalable to your goals. It pains me to see so many squander this precious asset; as you never get it back.

This article is how to make a $1MM per year as a loan originator. More accurately, as a loan originator with Geneva Financial, LLC (shameless plug). To make a $1MM in a single year is no easy task. I am thankful that most are unable, as it would have created a great deal more competition for me. I chose the route of first excelling as an originator, then as a branch manager, and finally as a business owner. But that is arguably a more challenging route than doing it solely as an originator. It took nearly 14 years for me to hit my initial goal, where I would have done it much sooner had I focused only on my personal production, instead of management. With few exceptions, the highest earners will always be loan originators, not branch managers. Exceptional sales people rarely make exceptional managers. Those that are dynamic enough to break the mold can write their own paycheck.

Lets start with some basic math. How to get to $1MM per year transitionally. Note: Calculations based on Geneva Financial, LLC pay structure and average loan amounts (28 states).

• Average Loan Originator Pay = 250 BPS
• Average Loan Amount = $246,000
• Average Loan Compensation = $6,150
• $1MM / $6,150 = 163 Transactions
• 163 Transactions / 12 months = 14 transactions per month (3+ per week)

14 transactions per month to make $1MM per year now starts to sound obtainable. Remember, sales is a numbers game. Do not make it more complicated than it is. Below are just a few examples that could be given to create your business plan to $1MM per year. Regardless, you just need to rearrange these concepts based on what you will actually do to obtain your 14 transactions per month.

Example:

• 7 real estate agent partners averaging 2 units per month = 14 Transactions. Note: In most populated states, there are tens of thousands of licensed real estate agents. Certainly you are good enough to build relationships with 7 that do a couple deals per month. Once again, there are techniques to courting real estate agents that are more effective than others. And please do not enter into any MSA agreements. You should never have to pay anyone for their business. Not only is it illegal, it is weak.
• Mining Database: Hopefully you have been building a database of all the past clients, and potential clients you have been working with over the years. Of course if you are new to the industry (unlikely) this may be a challenge initially. Regardless, every person you ever come into contact with that is a homeowner, or potential homeowner, should be in your database. Now once in your database, there are effective and not so effective ways to market to them. If you are sending out emails on favorite recipes or improving curbside appeal; you are ineffective. I can't share all of my secrets, but there are far more effective ways to do this. A solid database of 1000 people should net you 5 deals a month.
• Lead Generation (i.e. internet leads / mailers. etc): The most successful mortgage industry giants are based on this model. They spend tremendous amounts of capital to generate clients. They pay for the clients and don't have to pay the loan originator. You will not likely make a $1MM per year working under this model unless you are responsible for the cost of the leads. Lead conversion for strong sales people using average leads should convert 1%-3%. Lets use 2% for this example. 500 leads per month should net you 10 closed units. Of course there is the cost of the leads which can range from $1 - $100 per lead; but I have found that leads <$25 are effective. Don't purchase leads unless you know how to sell. Meaning, if you talk interest rates in the first few minutes of a conversation with a potential new client, you don't know how to sell. #1. Build rapport. #2. Find the need. #3. Overcome possible objections. #4. Fulfill the need. #5. Close. #6. Ask for referrals. I know, sales 101.
• Social Media: Facebook, Instagram, LinkedIn, YouTube, etc could be credited to decreasing the earnings of most sales people, as individuals get caught up reading mindless garbage or looking at pictures of your friends amazing hamburger or cute doggie. But disciplined professionals can effectively use these tools to market themselves with huge returns. I personally know a loan originator generating 4-5 units per month in unpaid Facebook posts. Not too bad. Throw a little money at boosting well thought out educational, relevant posts, and you could be at 10+ units a month from Facebook alone.
• Bear Suit: Yes, the good old bear suit. Invest in a big brown bear suit (or animal of your choice) and stand in front of your office with a sign that reads "Refinance Today! Call (480) 555-1212." At least you will be getting in front of a lot of potential clients. Certainly more than most loan originators will on a daily basis sitting in-front of the computer, waiting for success to find them. And while no one has taken me up on it, I am quite sure this technique is good for a couple deals a month. Numbers game!

None of my examples are reinventing the wheel. I didn't need to in order to become successful, and nor do you. This is not an exhaustive list of ways to generate your 14 units a month (I keep my favorites for my team) but a clear path to making $1MM per year. I can train anyone with an open minded positive attitude on how to master all these techniques; and I try.

To be a $1MM per year earner, or even a $100K per year earner in the mortgage business, you have to have that "burning desire" to succeed. You can not hope for success. You can not wish for success. You can not pray for success. You have to have a drive that is so strong that you will not be derailed by rejection or failure. You will have to sacrifice. I have never met someone more successful than I, that works less. Are you willing to work 60-70 hours per week? For years? Even decades?

I once heard a radio news report that the average owner of a Lamborghini earned a $1MM per year and/or had the net worth of $5MM. Now I am motivated by aviation. Faster than a Lamborghini. My new "burning desire." I love the chase for success, at new heights. There has been pain and sacrifice, but the rewards are great. Find your burning desire and I can show you how to make a $1MM a year as a loan originator.