Generating Leads In A Subprime Mortgage Market

By Kamran Khosravi, President of American Guardian Home Loans
Is now the right time to be in the mortgage or real estate industry? It depends on your point of view.
Every day, lenders and brokers are going out of business or downsizing due to the market slow down. The increasing numbers of foreclosures have prompted investors to tighten guidelines and modify loan programs. Therefore, business is slow because the available pool of potential borrowers has lessened. There are other reasons, but that is the reason drawing the most attention in the media.
Many people chose to enter the profession when business was flourishing to make money quickly. Those people, are now moving out of the industry and are in search of the next hot market trend. Left are professionals committed to the industry and view this mass exodus as a time to purge those that are not. Also, professionals who have been in the industry since the late 80s and early 90s have experienced this business cycle before and look forward to reaping the rewards when the market begins to peak once again.
However, simply having the will to stay in this business and remain profitable while others are ‘jumping ship,’ is not enough. Professionals that remain in the industry must ask the question, “What do we do now?” The answer is to diversify and perfect what you are already good at.
The first step: Diversify your customers and marketing campaigns. Determine who your typical client is and hold a brainstorming session to discover other potential clients. These potentials may have been targeted in the past, but when business was booming, they weren’t worth the time or energy to pursue. With business slowing, they should now be considered. By targeting this new group of clients, you can obtain a wider market share and see opportunities that did not present itself in the past. After you have an agreement on all of your target audiences, hold another brainstorming session to plan a new innovative marketing campaign to reach each audience.
The second step: Perfect your operations. You may have already discovered a successful formula for business processes and expenditures. However, many variables can change its effectiveness. Continued evaluation is vital. Take time now to evaluate every marketing tactic as well as how every lead was managed. Determine why some leads were not converted into profits and make changes to marketing tactic, processes or programs. Now, every lead and marketing dollar is crucial.
During a slow market, you may not get rich quickly, but you can sustain your business or enjoy steady growth. When the market changes, you will be ahead of the game.