Written By: Karen Deis
Read why this letter works in getting your foot in the door with Builders. Change a few words and it works with real estate agents too!
This is the 1st in a series of articles on how to work with builders and the new construction niche. In future issues, we will cover marketing strategies; construction loan programs (and draws); and how to setup joint ventures and builders.
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On-line Training Course
View this online seminar entitled, "Getting Your Foot in the Door with Builders" with Ken Pederson. Visit the website to view a portion of this 75-minute online seminar, to read up on what you will learn, or to purchase for your training library.
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If you have been thinking about working with builders, here are some facts to consider:
- Baby Boomers are driving the new home building craze - which is expected to be sustained for the next 10 years or so.
- First-time homebuyers and immigrants are buying new townhomes and condos in record numbers.
- Builders are extremely loyal to their mortgage lenders.
- Interest rates are not as important as existing home buyers.
- Easier loan approvals with higher credit scroes and more money down.
- There are niches within niches - townhomes/condos; luxury homes; modular homes; log homes, etc. (Yes, there are wholesale investors for all of these types of homes).
- The top 100 builders control about 35% of the market.
- There are 9,000 builders throughout the country.
This article will cover how you can get your first appointment with builders using this effective sample letter (within this article) and the reasons why it's almost guaranteed to get you a face-to-face meeting.
But first, not all builders are created equal. As you are probably aware, the largest builders (those that trade on the New York Stock Exchange) have their own lines of credit and own mortgage companies. They are not able to crank out the large number of homes each year unless they have a well-oiled production machine. They have craeted internal systems and it's difficult to get your foot in the door because they feel that you will disrupt their smooth operation.
Concentrate your marketing efforts on small to medium-sized builders in your own community. With 8,900 builders (9,000 less then top 100 builders) and 65% of the market left to call on (see facts above), the market is wide open and it's a chance to separate yourself from all the other loan officers out there.
So, how do you get your foot in the door in the first place?
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