According to Business Journal average Florida home loan is $210,000
Let’s assume you get paid 2.5% on every loan you close. If your average loan is $210,000 and you make 2.5% of the loan amount, then your commission is $5250 per loan closed, on average.
Now let’s look at what it takes to turn a $5,250 into over $10,000 a month in gross income.
Simple math tells us that 10,000 divided by 2, is 5000. That means you need to close only 2 loans each month you will make over $10,000 in gross income. There are many loan officers that close over 2 loans per month. If there are 30 days in a month, that’s one closed loan for every 15 days per month. Pretty simple to figure out.
So why aren’t ALL Loan officers making $10,000 per month?
As a Loan Officer, you don’t have to go to showings, closings or even meet your clients in person. If you need to close 2, $210k deals each month, that’s only 24 transactions a year. Trust me, there are a lot of loan officers that close more than 2 loans per month.
What does a loan officer need to do every day in order to hit the $10k per month mark?
Now that we’ve got all the math out of the way, let’s do the marketing part. You can’t get loans without marketing. Marketing simply means reaching out to people who personally could use a loan, or might know someone who needs a loan. AKA Clients and Referral Partners.
If you reach out to only two realtors a day, you’ll have talked to 40 agents in a month, assuming you only work Monday through Friday. Out of 40 agents each month, you should be able to get at least 3 to commit to send you business. Important -This may take meeting them for coffee, free lunch meetings, several calls and time to create a relationship, but it will happen.
If each of those three agents send you one deal, every other month, you’ve got 1.5 loans each month covered before you wake up on the 1st, because you know they’ve gotta eat too.
On top of agents, if you talk to 2 other potential referral partners a day, you’ll have made 80 contacts each and every month. If we use the same numbers and assume you pull 3 partners and they send you a referral every other month, you now have 3 deals each month no matter what.
But wait, it get’s better!
I’ve told you to make only 4 contacts a day so far. This can all be done via Facebook, realtor.com, zillow.com , trulia.com , going to open houses ect. I’m not asking for you to spend a huge amount of time prospecting each day. I AM asking you to be strategic about WHO you prospect.
If you repeat the above formula for just two months, you will have the 6 loans you need each month. What happens if you repeat the formula for 6 months? Well, truth be told, you will lose some referral partners etc. It happens, but with only needing to reach out to 4 people a day, you can stand to have a few drop offs from time to time.
Imagine the feeling knowing you have at least $20,000 worth of loans coming in to your pipeline, via referral partners, on a monthly basis. What would you do with that money? Would you invest it in yourself, your business or your marketing? You should.
All Loan Officers Have The Opportunity To Have A Custom Tailored Marketing To Help Them Succeed.
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