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What is Your Intention? How I Will Make $250/hour.

I’ll tell you mine. 

I want to get into helping originators do more deals.

I want coaching, not marketing. 

I want to help people survive this industry and bootstrap themselves into great performance.

That’s something that is cool enough to get me excited, and I’m putting stuff together to do just that really soon. 

My ethos is bootstrapping yourself, adding systems,and then making money.

But I don’t want to be an empty shirt.  I don’t want to be someone that couldn’t produce in this market.

So, to prove my point, and to prove my qualifications, I’m going to spend 2nd quarter producing.

Now,this wouldn’t seem novel in and of itself, except for the facts that:

  • I have no “pipeline,” currently.  No deals that are in process, nothing that has been submitted.  It’s the 8th of April.
  • Ohio is at ground zero of “declining markets.”  We can’t get a break.
  • Almost no loan officers are making more than 55k a year (except at 5/3).
  • I have a baby due May 1st and the house needs work.
  • I have 3 people’s blogs I’m supposed to be launching, and I cashed the checks so I’m on the hook.
  • I have done little follow up with my contacts for the most part.
  • Our average fee in our office is ~$2400 (a guess, not a fact).
  • I won’t spend more than $1,000 on marketing
  • I don’t intend to make being a loan officer a lifelong career.
  • I don’t have a processor, and my assistant no longer works with me.
  • I don’t intend to work in the Loan business more than 26 hours a week.
  • I will not let the service to my clients slip.
  • I’m not gonna do anything Zilly
  • I’m a broker, and we are dead men walking.

These constraints are how I’m going to operate. 

And with that said, I will produce $75,000 in fee income over the next three months.  $25k a month.  With room to spare.

It’s not just bravado and hollow talk; it’s what I will do, I’ll back it up with daily activity logs to prove I’m under 28 hours a week…and checks at the end.

I seriously want to help originators.  There’s a TON of good in this business. 

The Basic Plan:

  1. Get average fee to $4200 bucks.  This means mostly increase my loan size to $250 or above.  (OR Tuckerize everyone) This means that I need to be working with buyers that are $300 and above…and that’s kind of a feat in central Ohio.
  2. Close 18 loans; 4 in April, 7 in May and 7 in June.  This is not that hard.  In fact, closing less than 5 a month means you need a new career.  Something operating a “register” type device.
  3. Don’t spend money.  A lot of LOs are B-R-O-K-E right now.  Let’s operate like one of ‘em.  

Since I’ve refined my process to get loans done quickly, it seems doable.

Let’s think of some more numbers:

This isn’t a perfect calculation, this is out loud thinking.

Total work time I have is going to be 26 * 11.5 = 299 hours.

To do 18 loans, i’ll need 40 application by June 15th.  June 15th is what, 9 weeks away?  So that means I need 4.25 aps/week. 

Taking an ap is something that takes me about 1/2 hour to do it correctly (and that includes selling).   So 40 aps = 20 hours.  279 left.

I will probably need to process 25 files to make this work; processing a file is about a 3.5 hour job.  25 * 3.5 = 87.5 hours = 191.5 hours left.

There will probably be 10 hours spent dealing with the nuisance that is “coworkers” since I’ll do this at the office.  = 181.5

There will be 3-4 (horrifically banal and worthless) office meetings…each taking 1.5 hours.  (-6) = 175.5

I will probably have to quote 60 people to get 40 bona fide aps.  Quoting/Qualifying someone should be a 15 minute gig; that’s 15 hours.

160 hours left.

Let’s also do this:  let’s say I’m off again and give myself another hit of 20 hours.  I’m guessing for prequalifying or whatever.  140 hours are left. 

June 15th though, brings a problem.  After that I can’t bring too many people in the pipe to close on 6/30.  There are 10 weeks between now and 6/15. The planned hours AFTER 6/15 will not be useful in this campaign.  Processing will still get done, but marketing won’t count for this quarter (though it must still be done IFF I plan on being in the business).  So 39 hours – processing time of 7 hours = 32 hours.   This gives me 108 hours….to find 40 aps.

Let’s shave off a few hours….for lead follow up with customers, and making sure my Realtors never call me.  

Let’s shave off 12 hours.  This puts me at 96 hours of “business development” time to get 40 aps. 

2.4 working hours then must be an application.  An application is a bona fide person that wants a loan, has credit and has money.  Every 2.4 hours spent looking must yield one.

….

Success in this business can be a lot of things.  For Brian Brady, it’s to see how far you can take being a mortgage broker.  For Scott Tucker, it’s making a sport out of turning worthless homeowner equity into big duckets for brokers….for Morgan, it’s getting out of the game after making a worldbeating blog.  For me, it’s working 26 hours or fewer per week…hanging out with my kid as he grows up…and making $25k/month.  Or $250 an hour.

I’ll resume some sort of transparency mechanism.  It’s a little hard.  It’s hard to talk about your customers without violating their privacy.  An example is if my stats are updated and a facebook friend sees me and knows I’ve spoken with someone else…I mighta been dealing with a loan ap.  I can’t also put the fee earned on each closing in real time.

I will have the copies of the checks, and/or Locks (since we’re sorta correspondent lenders) and the rest of this stuff done when I can. 

Another aside:  If I didn’t have an absolutely rock solid processing process, none of this would be possible.   Well, it’s 1:44.  My alarm sounds at 5:30.  Maybe it shouldn’t but it does.  So it’s time to go to sleep.  Any errors in math or whatnot were blamed on the time of day.

  1. After you figure at least 30 hours of rate watching and belly-aching, you will have to work many more hours each week.
    Oh wait … you don’t spend time doing that. How do you get around that?
    And clue us in on HOW you go about business development. I think that is something LOs don’t get around to since it is often seen as nebulus and ethereal.

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