11 Niches for Mortgage Originators

Wednesday, October 25th, 2006

Marketing to a niche is my favorite way to get results. Why? Because you know better what your target customers need and want, compared to simply marketing to the general public. The more you know, the better you can tweak your marketing message and boost your return on investment (ROI). Niche marketing applies to many businesses but following is a list of eleven niches specific to originating mortgages:

Purchase Loans. We start with one of the basics. You can
find subsets of niches within the purchase niche like FSBOs, Investment Properties, Land/Farms/Ranches, and referrals from Realtors. The various sub-niches represent a different group to whom you can market, all of which have different needs and interests, therefore they will likely respond differently to your marketing materials.
  Construction Loans. Much like purchases, construction loans have sub-niches like Custom Home Builders, Subdividers, Condo/PUD Builders, Owner-Builders, Second Home/Vacation Home Builders.
  Loans for Home Repairs. There are a wide variety of needs home owners might have when it comes to home repairs, including: updating roofs, windows, doors, heating, air conditioning, or other worn or outdated basics of the home. Home Repair customers might also be interested in finishing a basement, remodeling an area of their home, or adding a pool in the backyard. All these repairs and updates require money. Imagine the opportunity of networking with roofers, HVAC companies, window and door companies, etc. They have customers that need the money you can provide them.
  Converting ARMs. This particular niche is hot right now, with rates on the rise and many ARMs set to make their first rate adjustment in the near future. You can get a list of borrowers with ARMs from your local county records and set up a simple mail merge in Microsoft Word to send a customized letter reminding the borrowers that their rate may soon increase. The more targeted you get, the better.
  Mobile / Manufactured Home Loans.  If you can find a good lender or two with some good programs for manufactured homes, you can make a nice living focusing on these types of loans.
  Foreclosure Bailout Loans. Yet another niche that requires knowing what wholesale programs are available to fund these loans. Find some good ones and you can make a good living working this niche.
  Chapter 13 Bankruptcy Loans. FHA is your best friend when it comes to Chapter 13 BKs. Study up on the requirements under FHA and find other wholesale programs that allow recent BKs and you’re well on your way to working a solid niche. Here’s a direct quote from HUD’s website:
A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage provided the lender documents that one year of the payout period under the bankruptcy has elapsed and the borrower’s payment performance has been satisfactory (i.e., all required payments made on time). In addition, the borrower must receive permission from the court to enter into the mortgage transaction.

Debt Consolidation Loans. This niche is almost too big to be called a niche, but it can’t be forgotten. The only problem I have with this one is that it’s one of the most competitive. SmartLeadz generates leads from qualified and motivated borrowers in need of a debt consolidation loan every day!
 

Cash-Out Loans. Same deal for this niche – not very specific and could probably be combined with debt consolidation.
  Rate and Term Refis. Perhaps “refis” should be the niche with debt consolidation, cash-out, and rate & term as the sub-niches. However, it is probably easier to find data that will allow you to target borrowers eligible for rate & terms than it would be to find those interested in debt consolidation or plain old cash-out refis.
  FHA Streamline Refis. This is it’s own niche because of the nature of the FHA Streamline. Easy, fast, and somewhat neglected. Loan Officers can do well focusing on this niche. REVERSE Mortgage: Target seniors in your area that either have a high amount of credit card debt (over $20k) or who have struggled with their mortgage payment. You can use CreditSure data to target qualified borrowers and use a targeted direct mail campaign to generate a steady flow of qualified leads.

Home Remodeling is not just about replacing worn out kitchen, bathroom fittings, furniture and lighting. Decorating or giving a facelift to the general atmosphere – that will be a delight to the guest and pride to the owner- is also a part of home remodeling.

A short list of the items to be taken care of while remodeling includes – Clocks, curtains, fabric for furniture, floor cloths, towel racks and grab rails, curtains, mirrors, pottery, tablecloth, wall tapestries, and other decorative accessories.

Clocks are one of the most strikingly visible objects in any home. A very wide range of designs right from those of the mid 1950’s designs, floor clocks, grandfather clocks, mantle pieces, and custom designed clocks are available in the market. For those who like to have bright colors, computer created digital paintings on textured glass and incandescent colors that double as wall clocks can be given a choice. Retro clocks from the 1950’s with either red neon or green neon for the trim look striking with the right background decor. Floor clocks that look like an heirloom piece are available in Do it yourself kits or as a fully assembled piece. Choice of a clock to a lot depends upon the space and decor of the home.

Windows need a lot of dressing to keep up the appearance of a home. Curtains, curtain rods and add-ons to the curtain rods can make a window look more like a piece of art. Curtains in lace, Madras style lace curtains, and Venetian blinds in old style bring the window alive. Decorative rods in place of drab utilitarian rods give a personal touch to the windows. These decorative rods come in antique brown, gold, black and pewter. Finials in various designs, finishes, colors, materials and sizes can be purchased separately.

Man is never tired of looking at his reflection in a mirror. So, mirrors have been designed in such a way, that you have a “welcome” mirror to welcome the guests. Handcrafted and available in red, green and natural background, words on the frame’s perimeter welcome the guests. Oak framed mirrors, mirrors embellished with leaf and various finials, besides mirrors’ designed to look centuries old, bring a visual elegance to the home.

Pottery gets noticed and makes a silent comment on the owner. It’s true that original designs and makes cost a fortune, but careful search can bring in sturdier and safer than the original collection. Money can buy a tea set, finished in 22 carat gold from Imperial Hotel China collection. Creamy white aranware, fluted stoneware bowls in various sizes, the 1930s collection of multicolor Bauer dinnerware, and melamine and acrylic dinnerware are some of the choices available in choosing crockery for the dinner table.

Money can buy the most exotic things on earth, but commonsense will decide about the utility value of such things. Most of the things, bought today, falling prey to the salesman’s psychological selling, may end up in the attic in the long run. So, one has to be all the more careful before spending whatever money on remodeling the home.

The top construction directories are not just helpful resources for the final consumer who might be trying to find where he can find different construction requirements near his location. Instead, they would be a major resource for industry players with coverage of news, best practices, forthcoming events, regulatory requirements and so on.

The directory section would typically list architects, engineers, manufacturers of construction supplies, real estate related service providers, construction software for different tasks and contractors undertaking different kinds of construction tasks.

The resources section could include different kinds of resources, as determined by the directory publishers. It could include industry news, industry related articles, forthcoming conferences and other events, materials & products information, associations and organizations, government regulations, training resources and career resources. There might also be forums for the construction community to exchange ideas and information.

Construction Directory Proper

Some directories might collect details of your requirements and then forward it to listed suppliers. Others might provide contact details in the directory itself.

Even the directory section is a resource not only for final consumers looking for construction-related services but also for the industry players. For example, they can find freelance workers in different fields to help them complete their contract assignments.

Directories typically list companies and professionals under major and minor categories. For example, under the major category Engineers, you can find sub categories like Civil Engineers, Land Surveyors, Environmental Engineers, Acoustical Engineers and so on.

With a good construction directory, you could find suppliers for different requirements such as concrete, metals, wood, windows, furnishings, and all the other requirements at or near your location.

Real estate related services typically include agents and brokers, appraisers, developers, investment trusts, mortgage lenders and so on.

Construction software can be for estimating work, design and drawings, 3D projections, project management and other tasks where computer assistance could contribute significantly.

The Resources Section

Industry news could keep you updated about slowdowns in particular sectors, major new projects and other developments.

Articles could illustrate and elaborate on best practices and case studies, for example.

List of events could help you by opening up possibilities for increasing your business by taking part in a trade show, or updating your skills by participating in a seminar, etc.

Technical resources like materials and product information, regulatory resources like environmental regulations, and documents like legal and contract forms are other industry resources that might be available in a construction directory.

Conclusion

A good construction directory would not be merely a listing of suppliers of different construction products and services. Instead, it would be a great resource for the players in the construction industry; in addition to helping final consumers locate the products and services they are looking for.

The resources section of a construction directory might include industry news and developments, best practice articles, forthcoming events like conferences, information on materials and products, regulatory information, different kinds of forms for quick preparation of construction related documents and so on.

Doors are almost like an address and identity to a home. A door, unique in style, design and finish makes a statement about its owner’s taste. So, while on a Home Remodeling process, care should be taken in selecting doors.

Door models and makes differ for each room and needs. Broadly speaking, doors can be classified as Antique Doors, Fiberglass Doors, Garage Doors, Patio Doors, Sliding Doors, French Doors, Interior Doors, Swinging Doors, Entry Doors and Front Doors.

Entry Doors in antique style can be suitable if one has a palace for a home. Doors made with solid Indian Teak together with original hand forged accessories, French doors salvaged from buildings in France, doors made of thick solid oak salvaged from early 1900s home and other such doors from various ancient and historic homes and places can give a real royal look to the home.

Fiberglass doors are available for both entry and indoor purposes. Fiberglass doors made to look like mahogany or oak, with stiles made from engineered wood with PUF cores for energy efficiency and rot-resistant bottom rail make a good choice as entry doors. Fiberglass doors made to look like traditional hardwood door, ready to install doors in 14 pre finished colors, besides doors of fiberglass panels in solid colors to conceal scratches and abrasions make a good selection.

Interior doors may be styled as swinging doors. Louvered doors in custom sizes with a choice of mahogany, cedar, poplar, cherry, maple or others may look ideal in a room where the doorway is arched. A full length book-case as a secret passage way is available. The doors come with deeper shelving, with options to make it in ash, basswood, maple and more.

Sliding doors come handy where space is a problem. But they make a style statement in places where the space is plenty. Sliding patio doors, moving on steel-wheel rollers, with a fiberglass mesh and extruded aluminum frame for heavy use with options of red oak, pine or black walnut make is one of the many styles available in the market.

Patio doors are available in such a style that it’s difficult to tell where the indoor ends and outdoor begins. Patio doors are treated for water and insect resistance, with opening styles including sliding, out swing, in swing, hinged and bi-parting. Patio doors, offer protection against winds, debris and break-ins.

Doors are often the first ring of protection against break-ins. Care should be taken while choosing a door. The door may be for the entrance or for the backdoor. But, for each purpose a specific kind of door, made up of specific material is available. Choice of doors should not be made based on the suggestions of friends and relatives or on the basis of an attractive advertisement in a magazine. One should not place a teak wood door for the bathroom just because he can afford it to. It would only make the owner seem to be a fool to others. A right door at the right place will not only mean a good decision but also value added to a beautiful home.

Home Remodeling is not just about replacing worn out kitchen, bathroom fittings, furniture and lighting. Decorating or giving a facelift to the general atmosphere – that will be a delight to the guest and pride to the owner- is also a part of home remodeling.

A short list of the items to be taken care of while remodeling includes – Clocks, curtains, fabric for furniture, floor cloths, towel racks and grab rails, curtains, mirrors, pottery, tablecloth, wall tapestries, and other decorative accessories.

Clocks are one of the most strikingly visible objects in any home. A very wide range of designs right from those of the mid 1950’s designs, floor clocks, grandfather clocks, mantle pieces, and custom designed clocks are available in the market. For those who like to have bright colors, computer created digital paintings on textured glass and incandescent colors that double as wall clocks can be given a choice. Retro clocks from the 1950’s with either red neon or green neon for the trim look striking with the right background decor. Floor clocks that look like an heirloom piece are available in Do it yourself kits or as a fully assembled piece. Choice of a clock to a lot depends upon the space and decor of the home.

Windows need a lot of dressing to keep up the appearance of a home. Curtains, curtain rods and add-ons to the curtain rods can make a window look more like a piece of art. Curtains in lace, Madras style lace curtains, and Venetian blinds in old style bring the window alive. Decorative rods in place of drab utilitarian rods give a personal touch to the windows. These decorative rods come in antique brown, gold, black and pewter. Finials in various designs, finishes, colors, materials and sizes can be purchased separately.

Man is never tired of looking at his reflection in a mirror. So, mirrors have been designed in such a way, that you have a “welcome” mirror to welcome the guests. Handcrafted and available in red, green and natural background, words on the frame’s perimeter welcome the guests. Oak framed mirrors, mirrors embellished with leaf and various finials, besides mirrors’ designed to look centuries old, bring a visual elegance to the home.

Pottery gets noticed and makes a silent comment on the owner. It’s true that original designs and makes cost a fortune, but careful search can bring in sturdier and safer than the original collection. Money can buy a tea set, finished in 22 carat gold from Imperial Hotel China collection. Creamy white aranware, fluted stoneware bowls in various sizes, the 1930s collection of multicolor Bauer dinnerware, and melamine and acrylic dinnerware are some of the choices available in choosing crockery for the dinner table.

Money can buy the most exotic things on earth, but commonsense will decide about the utility value of such things. Most of the things, bought today, falling prey to the salesman’s psychological selling, may end up in the attic in the long run. So, one has to be all the more careful before spending whatever money on remodeling the home.

The sale of counterfeit electrical products is rampant in the United States these days. This could be very dangerous. To avoid being sold counterfeit electrical products, you should only get the services of a responsible and licensed electrical contractor.

A licensed electrical contractor company holds all the required town, city, county and state certifications and licenses. It also allows only qualified licensed electricians to handle the designing, installation, maintenance and repair of residential, commercial and industrial electrical systems. This includes the designing, installation, maintenance and repair of street lights, parking lot lighting, landscape lighting and commercial lights. Aside from this, a licensed electrical contractor company offers solutions for hurricane preparation as well as lightning protection and surge protection. It also does generator installation. Furthermore, a licensed electrical contractor company is authorized to do electric inspection such as the 40-Year Building Inspection required in Miami-Dade County, Florida. It can upgrade and do electric repairs on electrical panels. It has fully equipped bucket trucks that it can instantly send out to meet calls for help in emergencies.

If you happen to get the services of an unscrupulous electrical contractor company, you might get victimized and counterfeit electrical products may be used in your electrical systems.

According to the website of the Anti-Counterfeit Products Initiative, counterfeit electrical products can be found in every product category in the electric industry market. The counterfeiting of electrical products has widespread negative impact not only on consumers but also manufacturers, distributors and electrical contractor companies.

The consumers face the biggest danger. When counterfeit electrical products are used in their electrical systems, it could result in electrical malfunction that could injure people or even cost them their lives. It could also damage equipment resulting in great expense and maybe even liability. Manufacturers, distributors and electrical contractor companies may also find themselves liable if the counterfeit electrical products are traced to them. Such liability is a direct threat to their profitability.

Manufacturers of original electrical products can be negatively affected by the existence of counterfeit electrical products in the market. When their products are counterfeited, their reputations are damaged and the customer trust that they had painstakingly built over the years is put at risk. Sales of the counterfeit electrical products also represent loss of sales in their original electrical products. Counterfeiting is, therefore, comparable to theft of the products of original manufacturers.

According to the Anti-Counterfeit Products Initiative, the problem of counterfeit electrical products needs to be tackled. Then again, the Anti-Counterfeit Products Initiative admits that the entire electrical industry has to unite and work together in order to win over this challenge.

William J. Ferguson, vice president of administration and general counsel for Babcock Power Inc., warns unscrupulous electrical contractors who use counterfeit electrical products: “You will be sued for breach of contract, negligence, gross negligence, perhaps internal misrepresentation, strict liability or fraud. … You could face up to 10 years in prison, $5 million in fines and $10 million for the company for a first offense.”

Kevin Yates, vice president of Siemens Energy and Automation, Residential Products Division, agrees, saying “If you choose to install a product that is not genuine but counterfeit and causes harm, you can be held liable for personal damages and possibly face imprisonment.”

Stephen Litchfield, assistant general counsel ofSchneider Electric/Square D, warns consumers, “We did some tests on counterfeit circuit breakers. We discovered the counterfeits had a 3,200-amp short circuit rating instead of the expected 10,000-amp. They also exhibited erratic tripping and had no calibrations. … What if you had a dangerous electrical problem in your home that wasn’t caught because the counterfeit circuit breaker doesn’t trip?”

If you want to keep your electrical systems free of counterfeit electrical products, you should not trust fly by night electrical contractors. Keep your residential, commercial or industrial electrical systems safe by relying only on reputable professional licensed electrical contractors.