How long does it take you to spot a deal?

Posted by Sep30, 2013 Comments Comments Off on How long does it take you to spot a deal?
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Your ability to spot a deal is probably one of the single most important factors that will determine how much profit you’ll make in the next 12 months. Become awesome at spotting profitable and non-profitable deals and you’ll make heaps of money. But the reverse is also true.

So what do I mean “spotting a deal”? I don’t simply mean “getting the loan approved and settled” –most experienced brokers can do that. A deal is a transaction that makes you money with a client that will give you more business in the long run (either referrals or additional lending or both). I believe that most brokers only need about 200 to 300 good quality clients. The quicker you can acquire 200 to 300 good quality clients, the easier business will be (as 200+ quality clients will generate enough repeat and referred business to keep the average broker busy and very profitable).

Some questions you need to ask yourself to determine if the client is a “deal” or not may include:

–        Does the clients profile and needs closely match your experience (e.g. if you have dealt with hundreds of self-employed builders in the past and the client is a builder then the answer is yes)?

–        How likely is it you’ll get the current deal approved and how long will it take? Do you already have an idea of the lender(s) you’ll consider?

–        Is it reasonable to expect the client to have surplus borrowing capacity in the future?

–        Do you like the client? Do they seem reasonable and fair? Do they like you?

–        Is the client open to receiving credit advice or do they seem fixated on interest rates and fees?

So what do you do if the client doesn’t look like a “deal” to you. Simple. Immediately refer the client to another broker and take a comms split if they write the deal (simply tell the prospect that you are too busy to take on the extra work but you can introduce them to a broker that a specific in helping people like them).

Do you have a system for quickly identifying a “deal” versus an unprofitable prospect? If not, get one!

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