As an owner, he knew what lay ahead: “I saw this coming, and immediately started training classes,” he said. “I told my staff to get ready for purchase.”
In March, 80% of his pipeline was based on the purchase market, with the level growing to 90% for April. His 36-worker branch last year closed on $250 million across 920 units, he said. On April 18, his firm will celebrate its third anniversary. He boasted of being the number one partner for Rocket Mortgage, which send top executives to spend a day at his branch to study his company’s machinations and corporate culture – akin to a tech industry campus with fun activities and easy layout.
Which is not to say he’s been immune to the market exigencies. He said he had to cut some 11 workers in a one-day swoop this past March given the refinancing slowdown.
“I lived the recession and mortgage meltdown and planned early,” he said. He offered advice for those going through hardship in the industry. “To any CEO or owner who’s struggling out there: “You need to stop and reflect on what you need and what you want. And you’ve got to get rid of the perks. If you have a marketing manager with a high salary, you may have to reduce. If you have extra LOAs that aren’t doing 30 or 40 units a month, you may have to reduce. You have a processor who’s only closing $15,000 a month, you may have to reduce. So now you’ve shrunken your fixed expenses.”
He offered further advice: “You need to invest in a good CRM, and keep constant contact with your past bulk of business because they’re either going to be selling their houses, upgrading their houses or looking for other houses. And if you’re not available or accessible, someone else is going to pick up that client.”
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