Loan Officer Leadership Podcast

047: 90 Day Burn - Prospecting to Win in 2020

January 15, 2020
Loan Officer Leadership Podcast
047: 90 Day Burn - Prospecting to Win in 2020
Chapters
Loan Officer Leadership Podcast
047: 90 Day Burn - Prospecting to Win in 2020
Jan 15, 2020
Steve Kyles

In this episode, Steve Kyles discusses the what you should be doing every quarter to make your business explode! You'll learn the importance of knowing your numbers and find that it's all about leads and activity.

Join our facebook group, Loan officer Leadership Group and Make sure to SHARE and SUBSCRIBE to the weekly podcast.

Show Notes Transcript

In this episode, Steve Kyles discusses the what you should be doing every quarter to make your business explode! You'll learn the importance of knowing your numbers and find that it's all about leads and activity.

Join our facebook group, Loan officer Leadership Group and Make sure to SHARE and SUBSCRIBE to the weekly podcast.

Speaker 1:
0:03
[inaudible].
Speaker 2:
0:04
Hey, welcome back to another episode of the loan officer leadership podcast. I'm your host Steve Kyles, and we are thrilled to be on this journey with you each and every week, uh, to help you get better and continue to grow your business in a Grilli grow your impact. And today what we're going to focus on is the 90 day burn. So regardless of what month you're in, it is a great time to do a 90 day burn. So here's what we know about the mortgage business. What you do today is the fruit of what you'll eat in 90 days. And what I mean by that is, uh, you're closing loans today based on the activity that you had 90 days ago. So if you did a lot of activity in October, November, your January is going to be phenomenal. If you did not and you took off during the holidays, then your January will probably be a little slow and sluggish.
Speaker 2:
0:57
If, uh, if it's in the middle of the year, let's say, may, uh, whatever you did in February and March is what you will, uh, see the fruit of in may and June. And so what I want to encourage people is this, there's a couple of things we're going to discuss today. Uh, in order to do a 90 day burn, you've got to know the numbers. So I want to share today with you what it is you need to be focusing on to help bridge the gap between what you did last year and what your goal is for the year you are currently in. So when you're setting your business plan, um, there are four things you've got to know. And I want to talk about this because I think people make a business plan super complicated and it doesn't need to be complicated. In all of the business that we're doing, we really track four key components to a loan officer.
Speaker 2:
1:47
Number one is how many leads are you getting each and every month? So if you were to say, Hey Steve, I don't know the number of leads, then that's your number one challenge in the one thing you're going to correct this month is a, you've got to know how many leads you're getting each and every day, each and every week and each and every month because everything boils down to one thing and that's leads. So when you're doing your business plans, there's four things to know how many leads do I need to accomplish my goals, how many of those leads complete applications? And what I mean by that is a complete a verbal application with you or complete an online application or a face to face application. And in what I'll tell you is this, I don't do face to face applications. It takes too much time. And what I was encouraged people is this, when we're doing an application, Hey, I want to come in and meet face to face.
Speaker 2:
2:43
Fantastic. Before we do that, I'm going to send you a link, complete the online application to take you about 10 to 15 minutes. That way when we meet face to face, we'll be able to work through your mortgage goals and plans. We'll work through sales price, monthly payment, cash to close and build a clear mortgage plan. So what I've got to track, or number one leads, number two, how many of those leads turn into completed applications? Number three, how many of those completed applications book what we call loan consultations? A loan consult is critical because now it's setting me up as the expert. A number four is going to be how many of those loan consults turn into locked loans. Um, and that's really what a business plan is really built around because those are the numbers you've got to know. And what I want to encourage you is as you're building your plan, as you're looking at this year, uh, you've got to know how many leads, how many of those leads need to turn into completed apps, how many of those completed apps turn into loan consultations, and how many loan consultations turn into locked loans.
Speaker 2:
3:50
Now when you're doing that, you're going to have probably 20% of your locked loans fallout. That's probably a good number to run with. But let me give you an example. Somebody who's trying to close, let's say 40 or $50 million for the year probably needs 80 leads a month. So let me show you how this works. Uh, when you're, you've got your target. So you're looking at, Hey, I need to close anywhere from 15 to 20 transactions a month. So what that tells me is based on average conversions, you need 20 leads a week or 80 leads a month. Out of those leads you need, um, you, so let me give you an example. In a week, if a, I like to look at leads and you say you need 80 leads for the month, then I break it down to weeks. So if I need 20 leads for the week and need out of 20 leads, 15 of them to complete online applications.
Speaker 2:
4:46
Um, so from 20 leads to 15 online applications from 15 online applications, I need at least 10 loan consults. So let me give you an example. If I got 20 leads, five of may have bad credit or I may get a lead where somebody sends me their name, information and contact and they don't return my call. They just stay as a white lead so they're not converting. So out of the 20, I need 15 of them to complete applications. Hey guys, I wanted to walk you through this process. Um, we'd love to help you purchase your next home. The first step is to complete the online application. 15 of those people who complete apps, you want a minimum of 10 of them to move into a loan console. And you may say, well that's kind of a low number, but here's what you've got to keep in mind.
Speaker 2:
5:31
When they complete an app, they may not qualify. It may be a refinance that just doesn't make sense. It may be a borrower who completes the online application and gets cold feet or decides to not move forward. So out of the 15 online completed applications, I need 10 of them to move into a loan, consult a book scheduled, 15 to 30 minute loan consult. And out of that you should be locking five transactions and out of the five transactions you'll close four or five depending on how the process moves. So let me give you an example. If you're not measuring those, then the challenge is you don't know if the activity you're doing is working. So when I talk to people and I say, Hey, what are you doing to prospect? They're like a lot of work. And then I say, great out of doing that lunch and learn and out of doing your calls each and every day, how many leads are you getting?
Speaker 2:
6:27
Well, I'm not sure. If you're not measuring the leads, then you don't know if what you're doing is actually bringing in what you need to actually close your goal for the year, which is leads. So the first thing we've got to do on a 90 day burn, as you got to know your number, my question is how many leads do you need? How many of those leads turn into online or completed applications? Then how many of those applications turned into book loan consults that are kept and then number five or four is how many locks do you need each week to begin to accomplish your goal? If you say, Hey, I need 10 closings a month, then what you've got to do is look at how many leads does it take to get to 10 closings and back into those numbers leads. How many of them need to complete applications?
Speaker 2:
7:12
How many need to book loan consults from consults, how many turn into locks? Taking into consideration your fallout because here's what I find. When your business plan is too complicated, it's hard to measure. So literally when we walked in every day on our board, we walk in and this is what my team does. We literally look at a 90 day window and we don't try to hit our goal for the whole year. I just need our team to win the quarter. So we look at 90 days and then I put the number of transactions I need to close in those 90 days and then we just pull it back to the month. How many leads do we need this, uh, this month? And then we do, we break it down into weekly. So on the board it says week one, how many leads, how many online applications, how many loan consults, how many locks?
Speaker 2:
8:02
Then when week one's done, we evaluate did we hit it or not? Great. What can we do to adjust the gap? Then we go to week two, how many leads, how many online applications, how many loan consults, how many booked, uh, or how many locked loans. And what you're doing is every day you walk in, you give yourself and your team the ability to know with very simple things, four things that ensure you're on track to hit your goals for the year that we're in. And so with that, here's what I think we ought to do to, for the 90 day burn, I want you guys to start working on building your list. So I wrote down some things as far as, um, what we look at. Okay, what's the activity that's now going to lead to your numbers? So once you know your numbers on a 90 day burn, it's all about leads.
Speaker 2:
8:49
Some of you guys don't need more leads. You need to just convert more of what you have. That's why you've got to track all three. Many of my leads turned into applications. If there's a gap, there could be two things. It could be they're paid leads, they're not qualified leads, they're coming from referral sources that are wasting your time. But if you're not seeing the conversion, you've got to find out what's the hole or what is the challenge that's creating the gap from leads to online application. Same thing if you're getting a ton of people complete apps, but they're leaving you before the console, you've got to find out what is the challenge in that. And the same thing even on your consults, if you're starting to do consults but not seeing the locks, you've got to evaluate what is it, and sometimes here's what I would challenge you with.
Speaker 2:
9:34
You may be doing the loan consults, but you won't see the fruit of it for 30 60 90 days, so don't give up. Don't quit. Keep pushing. Now let's talk about the homework. So what I want you guys to be focusing on on the 90 day burners, this you gotta be building your list. Um, who did you do business with last year? You gotta know who did you do business with last year and to the month you're currently at. So you got to pull out your top 10 agents that sent you the most leads and the most leads that turned into actual closings. So who did you do business with? And then the next thing you've got to do is you've got to start building a new target 30 who are the 30 new agents that I'm going to go after because in order to accomplish what you want to accomplish this year versus what you did last year or this quarter versus what you did last quarter, here's what I'll tell you.
Speaker 2:
10:28
If your number is bigger than what it was in the past, there's a gap. And the question is what activity are you going to do to fill in that gap? And so you've got to number one, know who brought you the business, refine that list. And the one, you know, you may be surprised that people that you've been spending the most time with may not be the ones that are sending you the most qualified business. You've got to quit spending time with them. Doesn't mean you don't like them, you don't know them and trust them and want to spend time with them, but you're running a business and that means you got to spend time with people that are helping you get to the end goal. And so evaluating where they came from is critical. But the next thing is this. You've got to start building a list of prospecting our prospective agents.
Speaker 2:
11:12
So who are the agents that you're going to target or go after this year? That's going to help you bridge the gap. And I'm really focusing on agents, but I would also tell you they're [inaudible] planners. They're CPAs, there's accountants, there's attorneys. Uh, there are business professionals. Sit can fill the gap as well. Um, but you need a prospect list of 30. Now also, let me encourage you with the agents. Some of you guys are going after agents that you know, like, and trust. But they only close 10 transactions in a year. Um, I have a a loan officer. I was coaching just this last weekend. He said, Hey Steve, I'm going after agents who do double digits. I said, great, what's double digits? And he said, well, they're closing 10 or more. And I said, okay, how many do you think they can refer you? And he said, well, I hadn't thought about it.
Speaker 2:
12:01
Think about this. If an agent closes 10 they probably are going to do about five or six buyers. Out of 10 transactions out of five or six, they probably can refer you half. And if half of who they refer you uses you, you're closing one maybe two transactions a year. It's just simply not enough. When you go back and look at your accounts and you look at the people you're working with over the last 12 months, you're going to realize the onesie, twosies come from the people who know, like, and trust you. They're just not doing enough business. My encouragement is this. If they're, if you're going to go after him, you're going to invest time, energy and effort. You've got to go after people who were at least closing 30 or more transactions. Um, if you're not, you're going to be spinning your wheels.
Speaker 2:
12:49
And you may say, well, there's not, there aren't enough agents that do that amount of transactions will then go after the ones that do the most transactions. Um, but if you're in a market, like I'm in Houston, there's a ton of great agents. You just have to be strategic. Take the time to invest in researching who is doing the business. Second thing is whoever's on your list have got to be people you know, like, and trust people. You would do life with people that have similar vision, values and beliefs. So here's what I'm looking at. Uh, and we're, we just literally updated our accounts pyramid nor, uh, our target list of agents. And here's what we're looking at. Who are the past listing agents that we loved or enjoyed working with that are doing great volume in business. Number two, who are some of the past older relationships that have fallen out?
Speaker 2:
13:41
Some of the ones we were doing great business with, but for some reason or another we just have not been doing business together. It's the top of mind idea. Um, I know personally I've got a, I've been doing business planning review with my agent partners and I've been even going after the ones that we've not done a lot of business with but we used to. And what I'm committed to is getting those people back into, uh, a business relationship. Here's the other one. Who are the people you want to know or get to know that have relationships with your current agent partners? So when you're building your list, and especially your list of 30 new agents in the next 30 days, look at your past listing agents, past old relationships and new introductions. And here's what I would tell you is this. If you don't have 30, start with 10 and the next week add five and the next week add five.
Speaker 2:
14:34
And by the end of the month you'll have 30 prospect agents or relationships to go after. So your homework is you got to refine your list if you want to explode this year, if you want to see your business double, you've got to fill the gap and you've got to be aggressive with you're doing. So that's number one in homework. Number two is this, you got to have tin talk twos a day. 10 talk to is a day. Hey Steve, that's not a big deal. And here's what I would tell you. It's not just talk tos, it's outbound proactive calls. So I'm not talking about the calls that come into your cell phone or the calls you have because you did a loan consult. I'll give you an example. Even yesterday I had seven loan consults back to back, but I've got to be intentional with talking to 10 people through outbound calls.
Speaker 2:
15:22
So what we're doing, and a great way to do it is we're going back out to agents and saying, Hey, I just want you to know I'm thinking about you and I do a ton of events each month. So I'm doing an agent mastermind on Thursday. Hey, a Oscar. Just wanted to connect with you and make sure that you have a personal invitation to my agent mastermind Thursday at 1130. I'm bringing in lunch. Hopefully you can be there. You've got to have every day 10 talk twos in outbound proactive calling. So in what I want you to do is go back and look at the theme days. There's an episode we recorded back a w a long time ago. It's to, uh, episode number five. And that was where we talked about just some basic structure of theme days. We'll release another epitope episode that's more current here in the future.
Speaker 2:
16:06
But if you want to know what a theme day is, go back to episode five. Uh, but you've got to have 10 talk to us through your outbound proactive calling every single day. Here's what you're going to do with those 10. You're going to book three appointments. What do you say? Where, what do you mean three appointments? Here's what I've got to do. I want to lead them to a face to face coffee, face to face lunch. Uh, so either one of those, a coffee lunch or a business planning session, uh, or just relationships. So I'm going to go to their office, but in your talk two's each and every day you want to book an appointment, you need a book three a day. Um, you want to lead them to an event. That's why I do literally an event a week because every time I'm talking to somebody, I'm leading you to something I'm doing to keep you in proximity.
Speaker 2:
16:57
So I got to book an appointment, lead them to an event, go deeper in relationship or ask for the business. And here's what your goal is based on, uh, what we talked about in knowing your numbers, leads, completed, app book, loan consults, and locked loans. I'm looking for a certain number of leads every single day. So what it does is it allows you to know, is, is my outbound calling being effective? Is, are my talk tos effective? Am I getting the business? We're getting almost six leads a day, but we're tracking it. My goal is five leads a day. And so what happens is whenever I'm talking to people, it's not just, Hey, hope you're doing well. I'm going to lead you to an event that adds value to help you grow your business. And in me leading you with value. Is there anybody we can work with together today to get them approved?
Speaker 2:
17:50
Get them fully underwrited and under contract to buy a home. So you can see that, uh, you've got to know who to reach out to. Number two is 10 talk twos a day through proactive outbound prospecting, following your theme days each day. So Monday's agent partners, Tuesdays follow up, uh, which are going to be in process and so on and so on. So you want to do it based on theme days. Listen to episode five. We lay that out. Here's the third thing. Uh, out of five, six, seven, eight. So third thing is this lunch and learns. No, I'm sorry. Happy hours. You got to do one a month. So in some of you may say, Hey, I'm not a big fan of happy hours. Fine. Don't do a happy hour. Do a book club. If you don't want to do a book club, do a mastermind group, it doesn't matter.
Speaker 2:
18:35
You have to do one a month. I prefer happy hours or something fun. Take them to top golf, take them golfing, take you know, do a group activity once a month. That is not about business. It's about relationship, socializing and networking. You need to do at the same time, same place. Create consistency. And here's what I would encourage you can bring your partners. I've got some great insurance partners, great. Um, home warranty partners, great home inspection partners. I'm always inviting people to be on the journey with me. So you've got to build your list. 10 out, 10 proactive talk tos through out debt, outbound phone calls. You've got to do one happy hour a month. The second one or the next one is this. You've got to do lunch and learns. So if you're trying to bridge a gap and you're trying to explode your business, the best way to do it is to be in, to do lunch and learns.
Speaker 2:
19:26
So I will tell you personally, I'm working to almost double my business this year and to do that, we started several months ago doing one to three mastermind groups the first week of the month. This month. This week I'm doing six of them. So we have built it up to six masterminding lunch and learn events the first week of the month around our agent playbook. So we've got an agent playbook. Listen, I put it, I posted it in the loan officer Facebook group loan officer leadership Facebook group. You want to see a copy, scroll down, look for the the, the agent playbook. But I am now up to six monthly mastermind groups where there are, yesterday I did two back to back. One had 20 agents, the other had 33 agents. Uh, I've got another one this afternoon, two more tomorrow, one more, uh, on Friday. And I've got to tell you what's, what's crazy about that is you will build up to it, but you've got to be aggressive in the lunch and learns.
Speaker 2:
20:28
And you may say, well, I don't have a team and I don't have the bandwidth to do it. You don't have to do it all. Um, I'm doing these is masterminds because what I'm doing is sharing content that's already been pre-prepared. So I'm not creating PowerPoint slides. I'm not creating all of the content. All I'm doing is being systematic in inviting them to come and we share best practices on how they can grow their business. It's an hour and a half and either I bring lunch or I bring in an insurance title, home warranty or home inspector and part partner to pay for the lunch. And together we co-market it. And my idea is this, the one I've got, tomorrow's only got 15 agents. It's designed to only have 15 agents. It's so you've got to be doing however many a lunch and learns it takes to achieve your goal.
Speaker 2:
21:17
Uh, whether that's one get started and do one the same time, same part of each month, like the first Monday of the month, the first Tuesday of the month, same place, same location, same time you've got to do it and commit to doing it for six months. So here's the thing, uh, if you do it for two months, you may gain the momentum and end up losing because uh, before you break through, you stop. So if you're going to get aggressive and lunch and learns, commit to doing for six months, same time, same place, use your same partners or uh, and make sure they're getting value. And then once the agents come, the key is not just to have them come, but now you've got to assimilate them into your process. So you've got to close the back door and make sure that you're introducing them to your process.
Speaker 2:
22:06
Hey, so glad you came to yesterday's agent mastermind. I want to make sure you have my contact information. Here are the tools we provide our agents to help ensure they continue to win. Hey, when we've got a lead, here's how you want to refer that lead. Here's how our followup moves through the process. Here's how we're going to help you close more business. Literally, I'm beginning to assimilate those agents because what will happen is over time, you'll build a community of agents that are absolutely loyal to you and the way you do business. So listen, we got builder lists, 10 proactive outbound talk twos a day based on themes. One happy hour, lunch and learns as you see fit. I would say anywhere from one to six per month. Um, and here's the other deal too. They don't all have to be masterminds. You can do topical.
Speaker 2:
22:53
Uh, but I would just say make it easy. The key is not to overwhelm yourself. Just get started. Hey, listen, you've got to attend at least one event every week. So not one you host, not one you put on a one you attend. So let me give you an example. I'm in Houston. We have her. So I'm at the, her two 90 area networking event today. Uh, next week I'm gonna be at the mortgage bankers association. The next week I'm going to be at another BNI type organization. So what you're looking at is every week you've got to attend an external event that you don't put on a, you don't host, you just go to so that you can network. The next thing is this, you've got to mail once a month mailed to your database. Uh, it's your past client, spear of influence and realtor partners. Here's what you've got to do.
Speaker 2:
23:42
You have to mail not just email. You've got to mail. So we show an example in the Facebook group about letter of the heart and evidence of success, evidence of success. Hey, it's a core model. I think it's absolutely outstanding. A one month you mail, um, a postcard that says, Hey, look at what we did. We closed this loan in 12 business days or 12 days. Um, we're, you know, it's all about what you did to win the letter of the heart is all about heart. So let me give you an example. If it's the beginning of the year, it's great to talk about new year's resolutions or Hey this year, my one word is, but it's all about heart. I know, you know, I'm thinking about one we did when my son mutton bust in the rodeo and we talked about not everything's easy, but he gave it his best.
Speaker 2:
24:28
And even though he didn't win, he won because he didn't quit when he was afraid. And that was the letter of the heart. It's so we've got examples in the loan officer leadership Facebook group. Um, so that's something you've got to do. Your database needs to stay three to 500. Uh, don't let it get bigger than that. And one of the resources we use is re, um, reaching neighbors. So we'll put it as a resource link on loan officer leadership.com on the resource page. Uh, tell them that a loan officer leadership, uh, podcast referred you. They're great friends. And so what they do is they tee it up to where it goes out on the seventh for me every single month. And that way my past clients get it. My top realtors get it, my top business partners get it. And it's another way that you're just staying in front of them.
Speaker 2:
25:13
A 90 day burn is not about doing all these fancy things. It's about dialing in the basic so you can win at a high level. So listen, we got build your list, 10 talk twos, proactive outbound calls based on your thing days. One happy hour, at least one lunch and learn. And I would challenge you to double whatever you're currently doing. Attend at least one event a week, a mail once a month. And then the last one is this. You get to do biweekly emails. So we have a database of about 1400 agents. It continues to grow. That's where my onesy twosy has come from. So every other week we email out and we email out what's happening the month. So the mastermind groups, uh, it's got a copy of the agent playbook. It's always got, Hey, we can still save deals for the month. Uh, and it's got any kind of market update or resource that we can provide an agent.
Speaker 2:
26:04
And sometimes we'll put a sharable in there, which would be, Hey, here's where the market's at. Home prices are at an all time. Uh, you know, they're at, uh, the markets are at the best they've ever been. We'll find something of value to add and we send it every other week via email. So I'm doing phone calls and texts, uh, just periodically as the thing days a lot. They're getting a biweekly email and they're getting a monthly mailer. And those are the basics that if you'll do that and start implementing it now, it's going to help you crush this year's business and puts you well on the way to a 90 day burn. So, Hey, listen, I know there's a ton of information, but I wanted to get this out because this month we're focusing on prospecting and what you can do to fill the gap from what you did last year and what you're gonna do this year.
Speaker 2:
26:54
If you're not doing something different and adding more activity and then measuring the results, then it's just wishful thinking. So do this for me. Hey, if you find value from what we're doing, would you invite two people or share the podcast right now, uh, with two people, uh, who you find would benefit from the podcast. The other thing is this, if you're not in the loan officer leadership Facebook group, uh, I'm asking you to join us, become a part of the community that we're building so that we can get better together. I'm super excited about all the tools and resources we're working on behind the scenes to release, and we are fully committed to helping you explode your business. Hey, and also if, man, if, if this is helping you, give us a review, send in testimonial steve@loanofficerleadership.com and with that, remember this, be purposeful in your growth and relentless in your effort. Anything worth doing is worth doing badly. Just
Speaker 3:
27:54
started [inaudible].
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