Latest / The Loan Daddy Podcast / 016 - The $1.2 Billion Deal That Changes Client Retention for Real Estate Agents

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016 - The $1.2 Billion Deal That Changes Client Retention for Real Estate Agents · The Loan Daddy Podcast

• 0:00
  SPEAKER_00: We've built it and we're gonna integrate this, and this is only going to help us, it's gonna help agents, and it's gonna help the customers as well.
• 0:07
  SPEAKER_00: What's up everybody, and welcome to the Lone Daddy Podcast, episode 16.
• 0:12
  SPEAKER_00: I wanna discuss a major news story that impacted our company cross-country mortgage last week, what this means for the industry as a whole, and why real estate agents should care.
• 0:23
  SPEAKER_00: Before I get into this though, I wanna take a step back because I think adding some context to this will help everyone understand why this is such a major story.
• 0:33
  SPEAKER_00: Now, we've heard this concept of having a customer for life mentality.
• 0:38
  SPEAKER_00: So what does that mean in the world of real estate?
• 0:41
  SPEAKER_00: Just because someone used you to purchase a home doesn't mean that they're obligated to use you again, right?
• 0:48
  SPEAKER_00: They can use whoever they want.
• 0:50
  SPEAKER_00: Same thing in my industry.
• 0:51
  SPEAKER_00: It's completely up to us to ensure that we're adding value so those clients come back to us to refer us and use us again.
• 1:02
  SPEAKER_00: And that's 100% incumbent upon us doing those necessary things that we need that we need to do so those clients do come back.
• 1:10
  SPEAKER_00: Now, this is very different from someone who is a CPA or an insurance broker or a financial advisor.
• 1:19
  SPEAKER_00: When you have a client as a CPA, you could have that client for 20, 30 years doing their taxes every single year.
• 1:27
  SPEAKER_00: A financial advisor managing someone's assets every single day for many, many years.
• 1:33
  SPEAKER_00: In real estate, we're attached the hip from when they go into contract to when they close, and then we're done.
• 1:40
  SPEAKER_00: That's it.
• 1:41
  SPEAKER_00: So the top agents are always seeking ways and opportunities to keep clients in their orbit.
• 1:49
  SPEAKER_00: It's the the activities that everyone knows, right?
• 1:52
  SPEAKER_00: Check-ins, emails, mailers, remembering birthdays and anniversaries, those little gestures go a long way.
• 2:00
  SPEAKER_00: Handwritten notes also is a big thing that a lot of agents do.
• 2:03
  SPEAKER_00: You need to build that system.
• 2:05
  SPEAKER_00: When you're early on in the industry and you have two clients, it's very easy to do that.
• 2:09
  SPEAKER_00: Remembering someone's birthday, anniversary, sending a mailer, all that.
• 2:13
  SPEAKER_00: When you have 200 clients or 2,000 clients, it gets a little bit more challenging.
• 2:18
  SPEAKER_00: And building that system is what allows you to start creating ways to keep those clients in your circle.
• 2:27
  SPEAKER_00: So everything that we're talking about in this episode is all about client retention, period, which is one of the most important aspects of our industry.
• 2:36
  SPEAKER_00: Take a second and think about a client you worked with this past year where you had to go the extra mile for that client, or extra 10 miles for that client.
• 2:45
  SPEAKER_00: It could be a buyer, it could be a seller, but someone where you worked, to say you worked overtime would be an understatement for that client.
• 2:53
  SPEAKER_00: But you ultimately got them what they needed.
• 2:55
  SPEAKER_00: They got it to contract, they either sold their home, they bought a home, and you got it done.
• 3:00
  SPEAKER_00: Is your job done at that point?
• 3:03
  SPEAKER_00: Technically, yes, it is.
• 3:05
  SPEAKER_00: You got them what they needed.
• 3:07
  SPEAKER_00: But if you really want to grow and gain that edge, we all need to start thinking three, four, five steps ahead.
• 3:16
  SPEAKER_00: And this is so tough, don't get me wrong.
• 3:18
  SPEAKER_00: We're all prisoners of the present, and we have so many things on our plate on any given day, and those are things that we have to tackle because they're immediate needs.
• 3:27
  SPEAKER_00: I get it.
• 3:28
  SPEAKER_00: But we can all get caught up on working in our businesses and neglecting working on our businesses.
• 3:35
  SPEAKER_00: And those are two different things.
• 3:37
  SPEAKER_00: Working in your business is again dealing with the things that are immediate needs, and working on your business is what you're doing to grow and expand your business.
• 3:46
  SPEAKER_00: So, yes, perhaps that client that you just helped purchase a home may not purchase a home or need your services for the next 10 years.
• 3:56
  SPEAKER_00: But every single person that that buyer comes into contact with for the next 10 years must know who their real estate agent was.
• 4:06
  SPEAKER_00: That it was you.
• 4:07
  SPEAKER_00: That has to be your mentality.
• 4:11
  SPEAKER_00: So when 10 years goes by and that person is ready to sell and buy a new home, they're not thinking about who they should call.
• 4:20
  SPEAKER_00: They're immediately calling you.
• 4:22
  SPEAKER_00: When I have a question about my taxes, I'm not scratching my head thinking, I wonder who I should call about this.
• 4:30
  SPEAKER_00: It's automatic.
• 4:31
  SPEAKER_00: I have my CPA.
• 4:32
  SPEAKER_00: Shout out to Larry and Jen, my team.
• 4:34
  SPEAKER_00: They're amazing.
• 4:35
  SPEAKER_00: But I'm not thinking about it.
• 4:38
  SPEAKER_00: I know exactly who to call.
• 4:39
  SPEAKER_00: Like my doctor.
• 4:40
  SPEAKER_00: If I have a health issue, I'm calling my doctor.
• 4:43
  SPEAKER_00: That's it.
• 4:44
  SPEAKER_00: Okay, so what is this news that I was mentioning earlier?
• 4:47
  SPEAKER_00: So last week, cross-country mortgage acquired Two Harbors Investment Corp.
• 4:53
  SPEAKER_00: for$1.2 billion.
• 4:55
  SPEAKER_00: Billion with a B.
• 4:57
  SPEAKER_00: Two Harbors is a REIT, a real estate investment trust, and along with the purchase, included the servicing arm of Two Harbors, which is called RoundPoint Mortgage Servicing.
• 5:09
  SPEAKER_00: And that servicing part, which I'm gonna get into, is really the key here.
• 5:14
  SPEAKER_00: So now Cross Country Mortgage has the portfolio of clients that Two Harbor serves and they service, as well as the roundpoint mortgage servicing infrastructure on how servicing is actually done.
• 5:28
  SPEAKER_00: And now cross country can use that servicing infrastructure to help service clients' loans in the future.
• 5:35
  SPEAKER_00: So why should you care?
• 5:37
  SPEAKER_00: And again, this goes back to what I was saying earlier.
• 5:39
  SPEAKER_00: This is all about client retention.
• 5:41
  SPEAKER_00: Now, cross-country mortgage has more of a vertically integrated operation where we can originate loans on the front end and have more control on servicing that loan on the back end.
• 5:54
  SPEAKER_00: So when your client closes with us, they remain in our orbit.
• 5:58
  SPEAKER_00: If rates drop, our clients are notified immediately.
• 6:02
  SPEAKER_00: If homes appreciate in that client's area, they're gonna be notified immediately.
• 6:07
  SPEAKER_00: And agents are gonna be notified as well.
• 6:10
  SPEAKER_00: So this keeps agents involved in their client's loan for the life of that loan.
• 6:16
  SPEAKER_00: So that relationship with the client doesn't end at closing.
• 6:21
  SPEAKER_00: So our model now is originate that loan, service that loan, help them with their next financing need.
• 6:27
  SPEAKER_00: Now that might sound obvious, but to create the infrastructure and the process for that, building that system is very, very difficult.
• 6:37
  SPEAKER_00: And we've done it.
• 6:38
  SPEAKER_00: We've built it and we're gonna integrate this.
• 6:40
  SPEAKER_00: And this is only going to help us, it's gonna help agents, and it's gonna help the customers as well.
• 6:46
  SPEAKER_00: We shouldn't disappear after closing.
• 6:49
  SPEAKER_00: We should be with these clients well after closing.
• 6:53
  SPEAKER_00: And this gives us that opportunity to do this.
• 6:55
  SPEAKER_00: And when I say us, I mean us on the mortgage side and you as a real estate agent.
• 7:00
  SPEAKER_00: It's a major tool in your toolbox to ensure that you don't disappear.
• 7:04
  SPEAKER_00: Understanding this piece will help you retain more customers into the TJR.
• 7:11
  SPEAKER_00: Our company would not have spent$1.2 billion if we didn't think that was the case.
• 7:18
  SPEAKER_00: And by the way, we weren't the only ones bidding for this.
• 7:20
  SPEAKER_00: It was very public that United Wholesale Mortgage, UWM, was also competing for this.
• 7:26
  SPEAKER_00: And we were battling back and forth, and ultimately won.
• 7:30
  SPEAKER_00: The companies that could potentially afford this were vying for this, and it was a big win for our company.
• 7:36
  SPEAKER_00: This is a big deal.
• 7:38
  SPEAKER_00: And at the end of the day, the customer wins here.
• 7:41
  SPEAKER_00: If this allows us to better serve the customer and manage the entire experience of having a loan, customers win here.
• 7:52
  SPEAKER_00: This helps you, this helps us, and this really, really helps the customer at the end of the day.
• 7:56
  SPEAKER_00: So, what are your thoughts on what I just said?
• 8:00
  SPEAKER_00: This acquisition?
• 8:01
  SPEAKER_00: Do you have questions on it?
• 8:02
  SPEAKER_00: Are there thoughts on client retention as it relates to the real estate industry?
• 8:08
  SPEAKER_00: I would love to hear from you in the comments section.
• 8:11
  SPEAKER_00: Please let me know what your thoughts are.
• 8:12
  SPEAKER_00: Um, and thank you so much for listening to this episode, and we'll see you next time.
• 8:17
  SPEAKER_00: Thanks, everyone.
• 8:18
  SPEAKER_00: Bye.