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Mining Mortgage Gold Using For Sale By Owner (FSBO) Marketing

Aug 17, 2007
I love For Sale by Owners (FSBOs). Why? Because, it's like having multiple gold mining claims popping up unexpectedly all over my little piece of land (territory). Without a doubt, when you know how to work with FSBOs, they are one of the easiest avenues to mortgage success that is available.

Unfortunately, most mortgage professionals really choke whenever they have the opportunity to work with a FSBO. Somehow they always find reasons not to. I must admit that FSBOs are rarely easy or fun if you're new to the mortgage business. Most newcomers get one good rejection, three at the outside, and they're done with FSBOs and off to try the next origination idea.

Why do so many mortgage people fail to tap the FSBO gold mine? There are actually four reasons: a lack of knowledge, a lack of marketing tools, a lack of persistence, and a fear of rejection.

If you follow the recommendations you'll find gold when those For Sale by Owner signs pop up. You should be warned about one thing: the FSBO marketing process won't work overnight. You have to keep at it strongly for a number of weeks before you see the nuggets start to come out of your personal FSBO gold mines. If you aren't willing to wait for the payoff to take place, you've picked the wrong career.

Here's a few simple tips on getting started with mining your FSBO gold claims:

1. Stake your claim. Choose a target area that you'll work with all the FSBOs. This could be a geographical area, or by property type such as single-family residents, townhouses and condominiums, etc.

2. Start small. Sharpen your skills in an area smaller than you expect to cover eventually. By starting small you'll save time and money and when you're working efficiently...you can expand your area of coverage.

3. Continually check for new FSBOs. This isn't a once in a while activity. You need to check for new FSBOs every single day of every single week of every single month.

4. Document your FSBO findings. Enter the FSBO information into your computer's contact management software or write it on 3" x 5" card. If you're using the newspaper classifieds, cut the Ad out and paste it on the card. Don't worry if you don't have all the FSBO's information. When you do get it, you can update your records.

5. Review each Ad and commit to your plan of action. You need to start thinking strategy for each Ad immediately. When will you call them? What will you say? How will you convince them that you are not the enemy, just a mortgage professional providing an extremely valuable service to them?

6. Continually drive (scout) your territory. You're not looking for claim jumpers here. However, you will find a few FSBOs who place a sign in their yard but don't run a classified ad. There's no doubt these people need your help. Make it a habit to take different routes through your FSBO area and note the addresses and phone number of a new FSBO. You can check your local tax records for additional information.

7. Work your plan every day of the month. If you're just getting started with FSBO marketing and you are planning on working the traditional 40-hour-a-week plan...you're doomed to failure. Really serious FSBOs are looking for workers and not players to help sell their house. You need to let FSBOs know that you're making things happen by working some evenings and weekends.

8. Contact your FSBOs. You can take the time and drop them a note, card, or letter introducing yourself. Chances are good they won't call you, so why not eliminate the mailing step and just call them. The advantages are many. On the phone you're more in control of the situation. You can refer to your notes, approach them more softly, and contact a number of FSBOs in a short amount of time. The best way to make contact with them is face-to-face if you can.

Stop by their home either in the evening or on the weekend. Bring a copy of the FSBO manual that details the plan to sell their home. Review the plan with them. If they have scheduled an open house...make it a point to attend and present your plan. Pick a time when there are no other prospects looking at the house. When you obtain an agreement they will work with you, leave the manual and follow-up in a day or two to assist them with the process.

Just so you know...you won't get a commitment from all of the FSBOs that you contact. In fact, only a small number of FSBOs will want to work with you, or anyone else for that matter. One thing you'll find is that new FSBOs will be added and old ones deleted from your list almost daily.

By maintaining four or five active FSBOs at all times...you'll be over-whelmed with good solid
mortgage leads. Stake your claim...implement your FSBO marketing plan and mine the nuggets from your FSBO gold mine!
About the Author
Tom Domin is the author of "101 Ways to Originate Mortgages" and publisher of "Tom's Mortgage Tips" a twice monthly Mortgage Newsletter geared for Mortgage Professionals. Increase your pipeline and put your mortgage career on the fast track and sign-up for FREE at http://www.MortgageMarketingToolKit.com
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