Financing comes natural
An Interview with Don Estrada
Friday, January 12, 2007
"It takes a big commitment to be a successful mortgage broker in today's market."
Don left a rewarding 24-year career in real estate where he owned his own business, taught real estate courses and managed a sales force. This move would allow Don to better use his abilities. From the early '80's Don spent his time arranging home financing for the agents in his office. "Financing comes natural" says Don. In the early 80's to mid 90's Don's focus was on arranging the construction of over 300 homes in the Surrey, BC region. Two years into his new career Don's business just turned Platinum.
"Identifying your business source allows you to better prioritize."
Don identifies and prioritizes his referral sources. He educates his preferred referral sources to effectively refer clients his way. "You have to keep your clients happy", says Don. Don considered opening his business in the middle of a shopping mall. The "walk-in" clients would have been a benefit but with a retail bank branch in the same mall, there was a greater chance of getting the "fallout" business from the bank. Today 60% of Don's business comes from real estate agents. Opening his business in a real estate office was a good move.
"Why wait for follow up documentation to appear - Go get it!"
When 40% of my volume represents clients in business for self; I can't be afraid to dig into their financials", Don said. Don requests his clients who have trouble locating their financial documents to sign a release form allowing him to obtain the information on their behalf. "My experience has empowered me to do more than my competition", Don explains. "On occasion I have reviewed a client's financials, identified flaws in their tax returns and arranged a refilling." This innovative approach secures the mortgage financing and creates new referral sources. Don is not averse to charging fees for his services. His services extend beyond the mortgage financing to include income tax. debt consolidation and counseling services as well.
"Product and Industry Knowledge has never been important."
"Take time to understand what indicators impact the markets in your region", says Don. Don follows the US news items such as Unemployment Rates, World Events and Retail Sales Tax to stay abreast of the world economic situation. He in turn educates his clients on what to look for. Don takes time when he sells variable rate mortgage products. "I point out their after tax savings", says Don. This increases the confidence the client has in Don's ability to assist them to finding the best mortgage solution.
"Technology Advances and Professional Associations can help your operations."
Using his mortgage origination system, Don tracks his business outputs and ensures that his accounting records are in sync. "E-mail helps reduce missing faxes and allows me to keep a record." As a member of the Mortgage Broker's Association of British Columbia, MBABC, Don takes advantage of the services they offer. Don is investigating the opportunity to electronically image and store his documents. This will help to reduce costs in office space. When asked about welcomed change in the mortgage industry, Don replied, "I would like to see all people selling mortgage products across Canada licensed to do so." Don commented further, "Investment and Real estate professionals must be licensed. The purchase or refinance of a home is often the single largest and most important investment that one makes. It is crucial that a governing body ensures the knowledge and ability of the individual who selling the product to the client".
When speaking with NewsPOINTs; Don paid tribute to Donna Rachel, Area Lending Manager, FirstLine Mortgages. "Donna took an enthusiastic approach in grooming me to achieve Platinum POINTS Membership this year", said Don. With Platinum membership Don will continue to enjoy free appraisals and increased discretionary pricing privileges for the next fiscal year.
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