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Now, it might take someone six months before they hire their first team member. Of course, it’s not your fault if you’re not the best HR person. In my organization, someone else does the hiring and firing because that’s not my gift. However, if you force yourself into the HR position and there’s a six-month delay, you miss out on $7,000 per month. That’s a total potential profit loss of $42,000 from not hiring that new person right off the bat. You might think that getting help is expensive, but not getting help costs you considerably more in money and time. It’s okay to recognize that building a team isn’t one of your skill sets and that you need to find someone who has that talent. Building a team is a major undertaking and I highly recommend it, but here’s the downside: Every minute you spend building your team, you’re not out selling. This leads into another viable alternative — plugging into a team that’s already in place. You don’t have to leave your company to do this. Find a group that’s already in your company and join their team. I did this early in my loan officer career, and it helped me immensely. Know that when you plug into another team, they’re going to charge you some basis points. Let’s say that cost runs about 25 basis points. If I’m used to making 100 basis points and I plug into your team, I’ll get 75 basis points, and you’ll receive 25 from me. As a bonus, instead of worrying about the headache of hiring and firing people, I’ll be able to focus on closing more loans and getting revenue for us.
Let’s look back at the math and say that I’m doing $200,000 loans, closing five loans a month with 100 BPS, and I’m earning $2,000 per loan. That’d be $10,000 of revenue as a one-man band. Now, if I plug into your established team, I’ll drop down to 75 basis points, but I’ll still be doing $200,000 loans — that doesn’t change. What does change is the number of loans I’m doing, which affects my earnings. If I was doing five loans by myself and adding six from being on your team, I’d be doing 11 loans. Instead of making $10,000, I’d be making $16,500 every month. Even though my basis points are lower, I’m closing more loans by being on your team. Again, both methods can bring success, and I try hard not to sway one way or another, because they’re both very effective. Y ou must decide what’s best for you and your business. There’s no right answer. I hope this information was helpful, and if you have any questions on the subject, you know how to reach out to me. Thanks to all of you for letting me be part of your success story.
KNOWING THE FUNCTION OF YOUR TEAM POD MODEL VS. ASSEMBLY LINE MODEL
We all agree that we have to set up a team to close more loans. That’s just how it works. And there are two primary methods of accomplishing this. I like to refer to them as the Assembly Line Model and the Pod Model. In the Assembly Line Model, when a lead comes into your team, you have someone who takes the application, which is usually you, the loan officer. Then that file gets handed off to someone else. This person orders out the file and hands it over to someone else to print the documents, which the client signs. Then these signed documents are passed on to another person, and someone after that, until the loan is closed.
In other words, there are a lot of different people doing individual things. I’ve never cared for this model at all. It’s hard to scale, incredibly inefficient, and it costs more than it’s worth agonizing over. Also, if a loan doesn’t close on time, we don’t know who to look at because there are too many hands on the file. It’s difficult to see where the problem came from. When you’re working with the Pod Model, you know exactly where to look because one person shoulders a lot of the responsibility. The loan officer is taking the application, selling the deal, and then handing it off to someone else who becomes the crew chief of that file. There are two methods by which the Pod Model can function: Lead to Closing and Contract to Closing.
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