Are you missing these loans?

Hindsight has made it easy to see that there were loads of loan opportunities sitting right under my nose. I was just too busy with lenders, compliance, paperwork and chasing deals to realise it.

Property investment loans will come across your desk from time to time without putting too much effort into marketing. However, many of the potential property investors don’t even know that they could or should be buying an investment property, and therefore are not contacting you to ask for a property investment loan.

How much money are you leaving on the table?

Rather than “Am I leaving money on the table?”, the real question is “How much money am I currently leaving on the table?”

There are truckloads of unwritten loans that you and many other brokers are missing out on because many existing homeowners don’t realise how easy it is to buy an investment property.

You also have first-time buyers that are not aware of the excellent tax deductions available that make investing in property quite affordable.

Another often forgotten source of new loans is the adult children of your existing clients that could be in a position to invest in property whilst living at home with their parents.

SMSF loans

Even if you don’t want to write SMSF loans, there are plenty of other brokers and banks that you can refer your clients to, and in doing so, you are offering a service to your clients and positioning yourself as their expert provider.

This places you in the driver’s seat, and in the perfect position to refer your client to a specialist property provider. Doing so will open up another income stream for you, should you choose to accept it. Alternatively, you may choose to rebate your commissions to your client. Either way, you and your client will benefit.

The good news

The best part of this ‘missing out on loans’ problem is that there is an easy fix. You just need to become proactive and make contact with your existing clients and referral partners, and start sowing seeds in their minds around the importance of property investment.

Start having conversations around how easy it is to get started in property investment, particularly for those that have some equity in an existing home or investment property.

Send out emails, text messages and/or snail mail to get them engaged in the idea of property investment.

Offer free strategy sessions or loan health checks. Do whatever it takes to get their attention and get them to take action towards creating a better financial future for themselves and their family.

The passionate phone call

This is by far the best method for getting quick results. Simply pick up the phone and have a casual discussion around your client’s current and future needs.

A passionate phone call will leave all your other marketing methods for dead when it comes to getting quick results and to nurturing your current client relationship.

Everyone likes to feel that you care about them. It is therefore important to frame your phone call around helping them create wealth for their future rather than trying to sell them something.

Are you losing clients to your competitors?

If you are not introducing the idea of property investment to your clients, then I can guarantee one or more of your competitors will be actively targeting them.

It will therefore only be a matter of time before you lose your client and their existing loans to another provider if you are not proactive.

It only takes a brief phone call to your existing clients and you will retain and grow your loan book. The simple choice of making two or three phone calls every morning before your day runs you over can make all the difference to client retention and to your bottom line.

The competitive edge

You have an advantage over your competitors that is often overlooked. Your existing clients already know, like and trust you. Therefore, your sales calls will be easier for you than your cold calling competitor, and your sales conversions will be way higher than theirs.

We know how hard it is to convince a stranger of the benefits of using our services, yet for some reason we find ourselves too busy to call existing clients who are already comfortable with us.

Extra income stream

Introducing the concept of investing in property to your existing clients and their friends, family and workmates, can create a dramatic increase in your income with little time or effort.

By aligning yourself with a reputable investment property provider, you will retain your existing clients and write more loans in the process. Apart from the extra income from the additional loans, you will also have the opportunity to receive a referral fee from the property provider if you wish.

With your client’s extra borrowings, they will most likely also need to increase their income protection and/or life insurance, opening the door for yet another revenue stream for you.

Increased value

Your clients will thank you for showing them how easy is to invest in property and the tax benefits and capital growth potential. In helping them make this discovery, they will now value your expertise even more and be thankful for your help, which will most likely result in more referrals from them.

Remember, if you don’t introduce property investment as an idea to your clients, one of your competitors most certainly will, and you stand to lose your existing trail as well as future income opportunities.

You owe it to your clients and to yourself to secure a profitable future for each of you.

So, what are you waiting for? Get on the phone to your existing clients right now, before your competitors do!

Any questions? Ask Darryl here.