Strategic Alliance with Real Estate Firms

[plan2insure]

Has anyone (Life & Health Agents) created a successful and mutually beneficial strategic alliance with a Real Estate Firm?

If so what was the alliances parameters? How were each compensated and what were the roles/duties of each alliance to make the partnership mutually beneficial?

I'm interested in teaming with a Real Estate firm to share client bases. My initial thought is that if they sold a new home to a client they would refer that client to our firm to assist in financial planning as well as discuss the importance in possibly acquiring Life Insurance to cover the families new mortgage.

How should compensation work in that sense? How much compensation would be fair?

I can see how a real estate firm teaming with a financial services firm would be value added for the real estate firms clients as they are offering them not only expert service and advice in purchasing a home but can refer them to a trusted financial adviser to help in making sure that home is financially protected.

How would such a relationship work? Does anyone have a road map as to how to create this relationship in a successful and mutually beneficial manner?

Thanks!!!!

 

[Larry Tew]

I have looked at this dozens of times, but I always come to the conclusion that realtors are off the scale towards "transactional" versus "relational". They can say what they want, but nothing - I mean NOTHING is going to get in their way of selling a house. The last thing a realtor wants to do is bring a new face into the mix prior to closing.

I know you mentioned getting the prospect AFTER the house sale, but for me it is much better to get them before they lock in a mortgage, since a part of my planning process includes a conversation about their mortgage, their down payment, etc. The idea makes sense in theory, but I've never been able to make it work the way I wanted it to.

On the other hand... I believe a working relationship with a GOOD mortgage broker has greater value. I have had good success with mortgage brokers in the past. The deal is that I'm not just looking to give a mortgage guy my clients so they can get a better mortgage. I want his client list to offer the planning process I use, which many times will trigger new business for the mortgage broker.

 

[NinjaNic]

This process of setting up such a relationship takes a ton of time and energy. There is no way they will hand over a client that they are making a $8000 commission on until it is completed, to make an additional $500-1000 on a split life sale. I think they could care less about your clients so you would need to bring value to theirs, after the mortgage sale.

I currently work with 3 major mortgage brokers, that between them write 9-1200 closed loans a month. The relationship I have with them is they provide an email introducing us as their mortgage protection department, and my team picks up the phone and calls them immediately upon loan funding. We are currently closing at 12%, with average case sizes at $950. We pay them 50% of street level comp--which is nice in volume for nothing they have to do.

We make sure they are licensed for life--easy course these days, and they go on the apps so they get paid by the carriers.

 

[GAHEALTH]

Has anyone (Life & Health Agents) created a successful and mutually beneficial strategic alliance with a Real Estate Firm?

If so what was the alliances parameters? How were each compensated and what were the roles/duties of each alliance to make the partnership mutually beneficial?

I'm interested in teaming with a Real Estate firm to share client bases. My initial thought is that if they sold a new home to a client they would refer that client to our firm to assist in financial planning as well as discuss the importance in possibly acquiring Life Insurance to cover the families new mortgage.

How should compensation work in that sense? How much compensation would be fair?

I can see how a real estate firm teaming with a financial services firm would be value added for the real estate firms clients as they are offering them not only expert service and advice in purchasing a home but can refer them to a trusted financial adviser to help in making sure that home is financially protected.

How would such a relationship work? Does anyone have a road map as to how to create this relationship in a successful and mutually beneficial manner?

Thanks!!!!

What if you brought additional value to the RE's clients to make the RE stand out? Say by teaming with the RE, they could save $45,000 on the purchase and finance of the client's home. Or for the RE - help them with an open house and increase their traffic to 40-70 prospects per open house? Would you think they would talk to you then and work with you? If you are brining in more prospects for their listed open house - what are the chances you will be able to help that agent close the deal faster and thus be more valuable?