When a real estate agent gives a lender business, I believe that the lender is obligated to do more than close the loan. Building long-term relationships by utilizing the information to build name-recognition with that closed client, their friends, and their family are paramount to building a database! This classic host/parasite relationship always works because both parties receive benefits.

Lenders prospecting for Realtor® business requires going the extra mile. How do we always make going the extra mile more profitable to the lender? Here is one more idea that will make databases more valuable to the lender and the Realtor client.

A series of letters, offering benefits and mentioning the team alliance, will go a long way in building a relationship for the Realtor-lender team. The lender's database should include details of a closing such as loan amount, interest rate, and costs, but it would also include the referring Realtor's name. By including the referring Realtor's name, he/she can be mentioned in the follow-up correspondence. Furthermore, the database would contain whether this was a buyer or a seller who was able to move on with their life by the efficient acquisition of a loan for the buyer. The letters, of course, would be tailored to those two instances.

Lenders could also have letters going to their re-finance clients who were referred by a real estate agent. Why send a letter to the re-finance clients? This way, a Realtor may get a buyer or seller lead, and he/she would be free to do even more lead generation for the team.

In my travels across the country, I meet with tier top real estate agents. I have found that the manipulation and prospecting of their database is many times neglected. If their team member lender picks up the slack, they are including a value-added service that induces the team mentality and increases the lender's business. This mentality will allow the loan officer to be mentioned as the lender of choice in all contracts, without the daily pounding of the real estate offices on "Main Street." The real estate agents who have learned of this idea are delighted and immediately implement it with their chosen lender. However, I would like to submit this as a "trickle up" theory rather than a "trickle down" theory. Lenders -- show it to your real estate agent clients!

What follows is a sample letter that I would love to see my client receive after they have just purchased a new home. My lender would have all the necessary information to produce this letter including the date of closing, address, and name of my clients. Because of their database, they would also know that I was the referring agent.

Lender Letter at Close

Date

Name
Address
City, ST ZIP

Name:

CONGRATULATIONS ON THE PURCHASE OF YOUR NEW HOME!

After we closed, I was talking with your Realtor, (AGENT NAME), about how to continue to offer you service after the dust has settled with your transaction. In discussing the terms of your loan, we agreed that it is unbelievable that more people are not taking advantage of these low interest rates! We will keep you up-to-date with any further changes in the market. Also, our brainstorming led to an idea that we wanted to share with you.

We did a "side by side" comparison of your regular amortization schedule and one with an additional $100 per month added to the regular payment. An extra $100 may not seem like much, but if it would fit into your budget -- take a look at the results:

YOUR ADDITIONAL $100 PER MONTH WILL SAVE YOU $63,311.15 AND 5.83 YEARS OFF THE TERM OF THE LOAN

I think that most people don't realize the impact of such a simple idea! This doesn't only apply to a new purchase loan like yours; in fact, I'm sure you have friends or family who would like to see a similar comparison done on their loan. We would be happy to help them out, too. Just have them call me or (AGENT NAME), and we'll get the figures off to them immediately. If you have any further questions, please feel free to call (PHONE NUMBER).

Best Wishes,

Dixon Judd
XYZ Lending

P.S. Please have your real estate questions and referrals directed to your Realtor for life . . . (THE ________ TEAM) or visit them at their website, www.agentssite.com.

This letter is just one step in a series of database letters I produced, providing the foundation for an amazing conversation with the lender's client mentioning the real estate agent! The lender will not only be applauded for this service from the client, but word will get back to the real estate agent, especially after you show him the letter! It is always smart to CC copies of your correspondence to the real estate agent so that the agent can also follow-up on the mailing.

Database farming is the most effective way to grow and maintain a clientele. Previous happy clients can be plucked by the aggressive internet sites based on the lure of lower commissions. This is one more solution to lower commissions … massive customer service and strong Realtor alliances leading to customer satisfaction.

Published: April 10, 2007

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Beginning in the late seventies, Walter re-wrote records in real estate particularly in number of transactions and dollar volume. His best year was 1992 with $72 million in sales. In today’s economy, that would equal to over $133 million dollars per year in personal production sales! He sold a house a day for seventeen years. Now, he is one of the most requested trainers in real estate. Franchises request and mentor his systems, which he has developed. Delegation, net-profit strategies, working hard and still having a life are a few of the easy to implement, low-cost strategies that we are proud to bring you. Some industry decision-makers believe Walter Sanford was one of the top agents in North America during the ‘80s and early ‘90s. To contact Walter, you can email him at or by calling 815.929.9258.