F Di Maio Sixsteps To Builder Biz 041409 (2)


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How To Grow Your New Construction Business!

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F Di Maio Sixsteps To Builder Biz 041409 (2)

  1. 1. Six Steps to Growing your New Construction Business Frank DiMaio – Wells Fargo Builder Division/Prosperity Mortgage
  2. 2. What can be considered New Construction? <ul><li>Single Family Stick Built </li></ul><ul><li>Modular </li></ul><ul><li>Construction/Perm </li></ul><ul><li>Townhomes </li></ul><ul><li>Active Adult – 55+ </li></ul><ul><li>Condominium </li></ul><ul><li>High Rise </li></ul><ul><li>Resort Condos </li></ul><ul><li>Manufactured </li></ul>
  3. 3. New Construction Market Opportunity <ul><li>70% of the new home permits are in the top 75 markets in the U.S. </li></ul><ul><ul><li>Permit data (NAHB/HBA) </li></ul></ul><ul><ul><li>Identify top markets based on new home starts </li></ul></ul><ul><ul><li>My Top Markets: Washington DC, Baltimore, Philadelphia, Charlotte, Richmond, Va Beach, etc… </li></ul></ul><ul><li>Construction/Perm accounts for 18.1% of the new homes market </li></ul><ul><li>Condominium represents 8.4% of the new homes market </li></ul><ul><ul><li>High Rise </li></ul></ul><ul><ul><li>Low Rise </li></ul></ul><ul><ul><li>Active Adult </li></ul></ul><ul><ul><li>Conversion </li></ul></ul>
  4. 4. Top 400 Builders = 47.5% of the New Construction Market
  5. 5. It only takes 6 steps: Step 1: Commitment Step 2: Target the Market Step 3: Get the Appointment Step 4: The “Fact Finding” Meeting Step 5: Prepare the Proposal Step 6: Follow-Up Meeting Start building an annuity in a market segment that provides the best opportunity to price without pressure ($$) and be profitable.
  6. 6. Step 1: The Commitment: <ul><li>Determination and Drive – you must spend an adequate amount of time on building this segment of business (not get rich quick!) </li></ul><ul><li>Product knowledge - will prepare a loan officer to maximize a builder/developer’s site traffic and deliver the highest capture rate possible in the project. </li></ul><ul><li>Time Management - at least 2 days per week for site visits to get new relationships up and running. (One visit during the week and one on the weekend) </li></ul><ul><li>Support and Training - Use your manager/experts to help in product questions to stay current on new initiatives to capitalize on these opportunities. </li></ul>
  7. 7. Step 2: Target the Market <ul><li>Investigate - know your market…find out which builders are selling homes! </li></ul><ul><li>Target Builder Sites - sites that will be conducive for servicing during your normal weekly schedule (ex. 3-5 mile radius from your home or office) </li></ul><ul><li>Research - Utilize the internet to research and find local builders (Social Networking) </li></ul><ul><li>Get Involved - join the local HBA in your area and participate. </li></ul><ul><li>Database – develop a list of the local builders you are targeting </li></ul>
  8. 8. Step 3: Get the Appointment <ul><li>Decision Maker - schedule the initial meeting with the builder/developer owner (site agents and sales managers are good for initial contact) </li></ul><ul><li>Sell the Appointment - The purpose of this appointment is to get the meeting and perform a thorough fact finding meeting. </li></ul><ul><li>Existing Relationships - if you have an existing relationship, schedule an hour meeting to meet with the builder. Call these builders first!! </li></ul><ul><li>Cold calling - is necessary and you should make these calls with a partner or associate (note: research thoroughly the builders and developers. BE PREPARED!) </li></ul>
  9. 9. Step 4: The Fact Finding Meeting <ul><li>DON’T SELL…JUST LISTEN - t he purpose of this meeting is to conduct a thorough fact finding interview of the builder…DON’T SELL…JUST LISTEN! (see attachment 3) </li></ul><ul><li>Find their “Hot-Button” - you want to learn as much about the builder as possible from this meeting and discover their needs. </li></ul><ul><li>Strategize - as a result of this meeting you will use this information gathered as the premise for the customized proposal. </li></ul><ul><li>IMPORTANT: Schedule the second meeting while at this meeting. </li></ul>
  10. 10. Step 5: Prepare the Proposal <ul><li>Customized Proposal - the proposal is a customizable document that is already developed, and we need to will add specifics uncovered in our Fact Finding meeting. </li></ul><ul><li>Suite of New Construction Products - (Extended rate locks, Buy-downs, Forward Commitments, FHA New Construction, etc). </li></ul><ul><li>Service Level Agreement - this document should signed by the manager and the loan officer that outlines our commitment as requested by the builder. </li></ul><ul><li>No-Pay Marketing Agreement - this proposal can be executed (this will continue to gain in popularity if the latest RESPA ruling is enforced in July 2009). </li></ul>
  11. 11. Step 6: Follow-Up Meeting <ul><li>Marketing Plan - present the builder with the customized marketing plan/marketing agreement (90 days, 180 days and 1 year) </li></ul><ul><li>Ask for the Business - The purpose of this meeting is to present the builder with our plan for a formalized relationship . </li></ul><ul><li>“ Why me?” - we must present the best Value Proposition to the builder enabling him/her to partner with “us” vs. any other mortgage company. </li></ul>
  12. 12. <ul><li>Grow market share among current builder partners </li></ul><ul><li>Bring other builders to your referral partners </li></ul><ul><li>Increase production and efficiency of current loan officers </li></ul>How can this N/C business help grow your income in 2008? What gets measured… gets done!
  13. 13. Contact Info Frank DiMaio - Builder Division 2098 West Chester Pike Broomall, Pa 19008 Office 610-325-5867 Cell 610-564-8105 [email_address]