Where can I get good quality leads?

Where can I get good quality leads?




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From one broker to another, Chris Davidson, Lead Commercial Broker at Sheridan Financial Services, discusses how you can obtain good quality bridging leads with the ongoing success of the online marketplace…


Although I’ve been a broker for the best part of 11 years in property investment and finance, introducing bridging leads is very new to me.  


Whilst I generate and complete a healthy number of commercial re-mortgage deals, I come across very few bridging leads. It is, of course, appealing to introduce this type of business, as the sales and payment cycle can be much shorter (two to four weeks) than commercial re-mortgaging (six weeks minimum, usually two or three months). Such deals can provide a useful new income stream but leads are few and far between.


Why is this?  

I understand that there are very successful brokers introducing bridging business, so there must be a way. I currently generate leads offline and online, and, in discussing how I go about sourcing bridging business, hope to begin a general industry discussion on how to generate these types of leads.


Online


Though I have spent a number of years in the property investment industry, and have received a ton of online leads, the problem was that any prospective client was also enquiring with a number of other agents, brokers and competitors that they had found on the internet or even knew personally through shopping around.  


In my experience, it tends to be true that online leads are taken to developers or lenders only for it to be found that, unfortunately, they have received the lead already from at least one other source.  


In my property investment days, this resulted in numerous disputes over commission. After all, who technically owns the lead?


I have even found, on one occasion, that a fully qualified lead that I took to a bridging finance company marked the third time they had seen the deal. It is all too easy to find everyone in this industry online.


The reality is that someone seeking bridging finance is going to shop around - it seems sensible. However, with few actual finance providers, the chances are that the lead will eventually go, or has already gone, direct.  


This is through no fault of the lender, as they need to execute their own marketing strategy separately of brokers, but does hamper the ability of intermediaries to retain leads and ultimately generate revenue themselves.


That being said, there are good leads to be found online: it is just that they are few and far between and the broker has to hope that the prospective borrower is not shopping around too much. If they are, and the broker does not have a locked-in personal relationship with the borrower, it is all too often that these “good leads” suddenly go cold.


Offline


Could offline sourcing, therefore, be the way forward?


Historically, my best commercial mortgage leads have arrived offline, often through my relationships cultivated with IFAs, estate agents and other businesses. These businesses tend to have strong relationships with the prospective borrower, and trust is immediate and assumed throughout the process. So far, however, I have hardly ever had a request for short-term bridging finance.  


So, what’s the answer?


There are clearly brokers introducing substantial volumes of bridging finance to the lenders and I, for one, would be interested in understanding how this is done.


With so much potential business out there, there must be enough business to go round, and I would be really interested in hearing generic strategies from other brokers on how bridging finance revenue can be increased, as well as what lenders know work for their best brokers.  


Everyone wants more business; perhaps more internal industry chat will help us all move toward this objective.

 

2 Comments

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    Havina Laff

    Would everyone who wants to disclose all their secrets about how to get good bridging loan leads please form an orderly queue behind me.

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    Alan Dring

    Chris You have started your search for business in this sector in the right way....by communicating and also by using those 2 fundamental words TRUST and RELATIONSHIPS. It is not an easy sector, with many brokers still ignorant of the product and as a result struggling to reach the tarket market.My company is currently working with Keith Aldridge and his team at Capital Bridging building their distribution with a core of brokers who understand the need for strong partnerships built on trust. I think you comments are very relavent in a market where the full potential is still to be realised. I am sure that if you talk to the right people and gather the product and client data you will need, the opportunities will present themselves.

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