How to sell homes, loans

How to sell homes, loans

by Jim Porter Jun 21, 2024

First, the salesperson needs to spend 4,000 hours learning the business. The first 500 hours are formal training and licensing required by the government and the employer that will be responsible for the salesperson.

Passing the test to become a real estate agent or licensed loan officer can be done by some motivated and smart test takers in just a couple months of online courses and studying, but it's the next 22 months of on-the-job training before a salesperson in real estate can tell a potential buyer, borrower or seller that they are an experienced professional.

I always say that a loan officer is not a professional until they have originated and funded 100 mortgages, and a real estate agent needs to list and sell 20 houses before they can honestly tell someone they have the knowledge and skill required to help them with possibly the largest financial transaction of their life.

Most of the super-talented rookies have managers and mentors that they can count on for support, and the most successful serious salespeople are smart enough to sell the team concept when making their sales pitch.

The best way for a loan officer or Realtor to get those first 80 loans funded, or 20 homes sold, within those 4,000 hours (2 years) is to go to work for a company that has a ton of support and training by mentors and managers that are compensated on the rookie's production.

When a rookie goes to work for a company that offers a mentor, manager or team leader, the rookie is not going to get a 90% commission split because the mentor, manager or team leader must be financially motivated to teach, help and cover the ass of the rookie and the employer.

If a rookie Realtor has a mentor-manager reviewing his or her transactions and willing to assist with potential clients, the rookie can sell the team concept and proudly sell the combined years of experience of the rookie and the manager.

So, once a salesperson has the 4,000 hours and the number of transactions under their belt, how do they make a living selling homes and loans? Is it artificial intelligence, a great company behind them, social media, SEO, Tony Robbins and Brian Buffini, old-school Zig Ziglar and Dale Carnegie books and tapes, CRMs like Salesforce, on-the-job training and continuing education, a willingness to work harder than the competition and doing things others are not willing to do?

Yes, all of these things are suggested but the biggest and most obvious thing that a salesperson must do is prospect and make sales calls 20 to 25 hours per week. This is the secret to success. Eighty percent of the licensed loan officers and real estate agents in America spend less than five hours per week making sales calls and prospecting and this is why 80% of the sales are done by the top 20%. The 80-20 rule!

Jim Porter, NMLS No. 276412, is the branch manager and senior loan adviser of Solano Mortgage, NMLS No. 1515497, a division of American Pacific Mortgage Corporation, NMLS No. 1850, licensed in California by the Department of Financial Protection and Innovation under the CRMLA / Equal Housing Opportunity. Jim can be reached at 707-449-4777.