Building Better Business Referral Partnerships

A good business referral partnership is like a good marriage, in a lot of ways. As a man who has spent the last 40 years in the mortgage industry and more years than that in a loving marriage, I promise you I know what I’m talking about.

You may be giving me that sidelong look about now. I’ve seen it in plenty of the loan officers I’ve mentored over the years. I’m not suggesting I know more than you, just that given my time on the planet, I’ve probably seen more than you have.

I’ve seen business referral partnerships in need of a bit of attention plenty of times over the years.

In any such relationship, there are times when the parties’ mutual need for each other is obvious and others when it’s not quite as clear, at least from the outside. But make no mistake, it’s always there in the best relationships.

Who needs who more?

A good relationship is not a competition. It’s not about trying to decide who needs the other party more. It’s always about who is willing to add more value to the other. That’s what makes them work.

And that’s why real estate agents are in desperate need of a good mortgage broker partner right now.

While the pundits argue over whether its a buyer’s market, a seller’s market or a draw, there are potentially millions of buyers on the sidelines because they just can’t find a way to finance the home they want to buy.

They could easily afford a smaller home, but those are very hard to find right now. Builders like to build much larger homes, but that puts them out of reach of most buyers. At least until they find a way to afford them.

That’s where a good mortgage broker can be just the partner a real estate agent needs. The real estate sales professional knows that winning the listing doesn’t mean much if you can’t find a buyer who can afford it. They would welcome the help.

Getting the job done to form stronger relationships

It’s true that during the refinance boom, many mortgage loan officers forgot all about real estate agents and their longstanding business referral partnership. The people who didn’t forget about them were the independent mortgage brokers.

When I come alongside a new mentee and start coaching them to build a stronger mortgage origination business, the first thing I address is their mindset. Professional real estate agents are in the business of selling homes and they want to partner with loan originators who know they can help buyers take part in those transactions.

My mantra is: you find the house, we’ll find a way.

That means that if we have a younger buyer who just doesn’t have the resources to buy the house they want, probably the only suitable home they could find, then we may counsel them to find a friend to bring into the transaction.

I really think that fractional home ownership can work. Sure, it takes some additional paperwork and some friends who are committed for the long haul, but it’s possible.

In other cases, it may take a non-traditional lender to make the deal work. I’ve done deals where a hard money loan acts as a bridge while one buyer works on their credit for a refinance. Or a Non-QM loan may do the job. But it's up to the mortgage broker to get that job done.

A good real estate salesperson and a good mortgage broker is a marriage made in Heaven. If you don’t have that kind of relationship, reach out to me today. I may be able to help.