How to Generate 27 Qualified Subprime Mortgage Leads Per Day

Focusing on subprime mortgage leads can help you in a number of ways. One good thing about getting subprime mortgage leads is that the borrowers are less likely to look elsewhere for a better deal. Also, commissions on subprime mortgage loans can be a good way to make money.

I've found that direct mail is one of the best ways to find people who are interested in subprime mortgages. So, let's look at how to put together a profitable direct mail campaign to get subprime mortgage leads.

List of Possible Customers

I recommend list companies and credit agencies as good places to get your mailing lists.

Here are two examples of the kinds of information you can ask list companies for to find subprime borrowers:

1. Get a list of people who just filed for bankruptcy under Chapter 13 and own their own home. Pay off their Chapter 13 bankruptcy by doing a cash-out refinance.
2. Get a list of people who got a loan from a subprime lender at least two to five years ago. Their penalty for paying off the loan early will be over, and they will be able to refinance.

When you work with a credit agency to get your subprime mortgage lead mailing list, here are two list ideas:

1. Choose people who have a low credit score. You choose the range of credit scores based on the loan programs you have.
2. Find people who own their own homes and need help with their money. Get a list of all the homeowners who are 30 days behind on their first mortgage loan payments. Or, get a list of people who own homes and have had 30, 60, or 90 consumers in the last 6 to 12 months.

Add these to other criteria to get a better idea of who your prospects are. Here are two more ideas for how to make a list:

1. Homeowners with a revolving debt of between $15,000 and $50,000
2. Properties with a loan-to-value (LTV) of 80% or less Mail Piece

Here are some important basics that you should include in your mail piece:

Personalized content

1. Tell them how much money they will save each month and over the next 5 years with the new loan.
2. Give sample payments.

Tell them about your unique selling propositions (USPs)

1. Have they been approved already? If that's the case, tell them in the letter.
2. 1 percent mortgage loan options
3. Options with no costs to close
4. Don't pay for two months

Make sure you follow the rules for banking in your state. In your mail piece, including the following:

1. State license number
2. Disclose APR's
3. The logo for Equal Housing Lender
4. Under your name, share some personal information about yourself. Your name Years working in mortgages You've won some awards Degrees or certifications you have Hobbies Interests Here are examples: Your Signature Who Are You? Senior Mortgage Planner 10 Years of Experience with Mortgages Financial Planner with a License Married with three kids Single mom with two kids Coach for kids' basketball

Use split testing to improve the number of people who buy from you.

Now that you have a mailing piece and a list of potential customers, it's time to mail. Testing is the key to making direct mail work. If you test different parts of your direct mail campaign, you can find ways to increase the number of people who buy from you. Over time, you'll build up a mailing campaign that will bring in a lot of money.

Split Testing: How to Do It

Tell the printer to divide your list into three parts:

1. Make sure that the groups are chosen at random.
2. The second group will make up 10% of your list.
3. The last 10% of your list will make up the third group.
4. The first group will make up 80% of your list.
5. Send your original letter to the winner and start over.
6. Keep track of the results and see which version of the letter got the most calls, applications, new loans, and loans that were paid off.
7. Send the first copy of your letter to group 1.
8. Make ONE very small change to the original letter and send it to group 2.
9. Then, make one more small change to the original letter and send it to group 3.

Do you understand what you just did? The name for this is split testing. If you keep doing this, you can keep raising your conversion rate, getting more leads, funding more loans, and making more money.

Here are some changes that could be made:

1. Give your letter red headings.
2. Play around with the PS
3. Add a heading
4. Use different envelopes
5. Make one paragraph different.
6. Include a phone number with your website address
7. Instead of a phone number, use a web address.
8. Talk about different and unique USPs
9. Give something away for free, like a coupon (appraisal, processing, etc)

Make sure to only make one small change at a time. If you make a lot of changes, you won't be able to tell which ones affected your conversion rate and which ones didn't.

Don't think that this testing isn't important. If you send out 2,500 letters every week and get 1% more responses, you'll get 25 more calls every week. That's 100 more calls each month. At a low conversion rate of 10%, that's 10 more loans every month.

That could easily add $50,000 to $90,000 to your monthly commissions.

I am sure that if you have a good direct mail campaign, you will get more subprime mortgage leads. If you try these tips, you'll be amazed at how well they work.

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