In This Chapter

The mortgage broker business is heavily dependent on referrals. You want to build a network of connections in the community you serve. You want your name to be the one that comes instantly to mind when someone asks “Do you know a mortgage broker?”

You clearly want to build good relationships with the real estate agents in your area, but they’re not the only ones who will serve as the conduit to your business. Your company’s name could just as easily pop up because someone sees it on the back of their kid’s Little League t-shirt. Sponsoring a team, which can cost a few hundred dollars, brings incalculable name recognition and goodwill.

You’re a professional who knows the business inside and out. But you need clients to succeed. This chapter shows you how to build a broad network of relationships.

The quality of the networking connections you make is more important than the quantity. But you won’t know quality until you’ve networked a lot. A stack of business cards in your drawer doesn’t tell you anything. In fact, it doesn’t matter if you gave out a ream of your own cards if there hasn’t been any thought behind your distribution system.

The first rule of networking is to develop a method of organizing your contacts so that they’re easily retrievable. Take the time to input the data into your computer and download it to your PDA. Ideally, you will record the following information: name, address, telephone numbers (including cell), e-mail address, company name, position, where you met them, and if there is a connecting link.

You want to be able to cross-file the data. For example, when you file Mary Smith, real estate agent at Jones and Taylor Agency, of Newburgh, New York, if you pulled up a list of realtors, her name would appear; if you pulled up a list of real estate agencies, the firm would appear; if you pulled up a list of businesses in Newburgh, the company would be listed. If you don’t bother to file your contacts, then you might as well throw away the business cards you carefully collected.

Effective networking is knowing how to take advantage of an opportunity. While exchanging business cards collects the information, you need to be able to make a people connection as well. Not quite the love connection of a match service, but you do want to make a good impression on whomever you meet.

Learning to make small talk is an art. Even if you’re not totally comfortable, here are some icebreakers that will jump-start the conversation. The key is to ask open-ended questions that can’t be answered with a simple “yes” or “no.” For example:

But remember, you must be prepared to answer similar questions. You want to get to know other professionals, but the key is to have an opportunity to let them get to know you.

Practice a brief explanation of what a mortgage broker does and how your services are different from a lender. Try to keep it light, but specific. For example, I always point out that using a mortgage broker rather than a lender to find a loan is like going to an ice cream store. Your firm offers 31 flavors; a lender is limited just to vanilla. It’s not that vanilla is bad, it’s that you might find something that suits you better if you had a choice.

Be careful about how you differentiate your company from your competition. It makes people uncomfortable if you badmouth other local firms. Make your case without diminishing others. Your reputation will stand on its own.

Follow-up is essential. Make time within a day or two of first meeting, to send an e-mail or a quick call to those contacts that you thought were promising. You want to make the connection while it’s all still fresh.

Your company may be the member or sponsor of a variety of activities in the community you serve, but you need to put a face behind the firm name. Some local civic groups have traditionally served as an opportunity to network with other local leaders, as well as serving their community.

Volunteer to attend meetings of the local Chamber of Commerce. Other groups to consider joining are the local chapters of:

There are usually monthly program meetings of these groups, and their fundraising efforts meet both local, national, and international needs. It’s not enough to simply show up for the weekly or monthly lunches. Volunteer for committees or be responsible for a program or fundraiser. You want to build the reputation of your company and yourself. You want to be known as a good resource and someone to consult for ideas, names of other workers, and suggestions. This keeps you and your company visible. When people see that you’re dependable as a volunteer, it teaches them that you’re dependable in your business capacity as well.

You might also consider joining the local chapter of Toastmasters, www.toastmasters.org , to develop your facility in public speaking, as well as to network with other local business professionals.

These groups are an opportunity for you to make contact with the other business leaders of the region. You want to know what is happening economically to the area and any changes that other businesses are planning.

In addition to community groups, women mortgage brokers might also join groups aimed directly at female business professionals. To find a group in your area, run a web search for women business leaders + the name of your city.

While it’s important to be involved in civic groups, many women find a more supportive, noncompetitive atmosphere in all-female groups. Groups that are co-ed, some women believe, tend to be too political, competitive, and sports-oriented.

Margarita Quishuis, former director of the Women’s Technology Cluster, a San Francisco-based mentoring organization for women-owned businesses, explained that in all-female groups, women “aren’t afraid to share their fears and anxieties … while many women in business agree this would be sudden death with male business associates.”

Women also find these all-female networking groups are a wonderful resource for advice on all the usual business-related concerns, but with the bonus of being able to openly discuss the ways to bridge the chasm between men and women in the workplace.

Don’t limit yourself to only female networking clubs, but don’t exclude yourself either. Quishuis advises to “never rely on only one social circle for your contacts.”

If your area doesn’t have an all-women’s business professional group, this is an opportunity for leadership on your part. Start one.

There are also networking groups for African Americans, Hispanics, Asians, and Native Americans. A local web search will help you discover organizations in your area. Their value is similar to that found by women in all-female networking organizations. It’s an opportunity to encourage career development, discuss common problems, and build an important business network. They aren’t the only groups you should belong to, but they are a valuable opportunity to reach out to others in a noncompetitive, supportive environment.

Some of the best networking opportunities take place away from the traditional meet-and-greet business lunches. I’ve met clients and made professional contacts while pursuing my hobby with the Sports Car Club of America.

Look for opportunities to get involved in the community in other venues. What are your interests? Find a community group that supports them. For example, volunteer for the executive board of the Little League or Soccer League. Or offer to chair the Red Cross blood drive or the holiday gift drive for the underprivileged. Meeting other community leaders outside the normal channels is an equally valuable way to make connections and give others an insight into your character.

Join professional organizations and network with peers. The National Association of Mortgage Brokers, www.namb.org, is the only national trade association representing the mortgage broker industry. With 46 state affiliates and more than 24,000 members, NAMB promotes the industry through programs and services such as education, professional certification, and government affairs representation. NAMB members subscribe to a code of ethics and best lending practices that foster integrity, professionalism, and confidentiality when working with consumers.

You should become an affiliate member of your area’s board of realtors. Affiliate membership is open to professionals in allied industries who are not actively engaged in the real estate brokerage business.

Similarly, you may want to become an affiliate member of your local chapter of the Appraisal Institute, www.appraisalinstitute.org. This is the trade organization of home appraisers.

Real estate agents and builders are key to connecting to home buyers. There are two kinds of open houses: those targeted to buyers and those targeted to other agents. Offer to provide refreshments for both kinds of events, in exchange for permission to sit in the house with your materials and talk to prospective buyers or agents.

But there is another kind of networking that helps real estate agents and you. Offer to host a coffee and dessert program for all the agents of a real estate company to provide them with an overview of the current mortgage market and your projections for the future. You’ve got to be thoroughly prepared for these meetings as you’re talking to other housing professionals.

I prefer to build a strong, exclusive relationship with one agency so that I’m the go-to mortgage company for those realtors. You may prefer to spread yourself thinner and offer your services to several companies. Another option is to reach out to another agency or builder that is not being served by another broker in your firm.

The Least You Need to Know