Don’t Be Recommending the SAME Vendor for Every Transaction

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Anthony Lamacchia: My mortgage broker is the greatest, my attorney is the greatest, you only should use them. I only recommend one mortgage broker. I only recommend one attorney, one inspection company. I have advice for you all. Don’t do that. Don’t just be recommending one and we all have our preference. That’s fine, there’s nothing wrong with that. It’s totally okay to do that, but there’s a number of reasons you don’t want to just be sending everything to one person. I’m going to go through some of those reasons with you now. Anthony Lamacchia here with Crush It In Real Estate, and I want to talk about vendor relationships, incoming and outgoing business, and why it’s not good to get yourself too hooked on with one.

Let’s talk about you sending out referrals. I did the same exact thing years ago. I only sent business when I was selling to one attorney and we drowned that attorney who’s by the way, a very good one. She might end up seeing this video. Very good one, but we drowned her in business, overwhelmed her in business, and then when she didn’t perform, we got all mad and grumpy. If you don’t do better, bye-bye, and now I look back and I’m like, “Man, we were harsh.” We went from sending 3 deals a month to 25 deals a month in a one-year time span, it’s just too much. It made that person’s business get too engulfed in ours.

It made them so that they were growing, but they were growing because of ours. It’s not a smart thing to do and I’ll tell you from your perspective, let’s reverse the roles. Let’s say you have one source of business that provides you the vast majority of your business. Maybe it’s a new construction complex, maybe it’s, I don’t know, an REO relationship, some type of corporate relationship. Be careful. You never want to get your business too addicted to one source.

On the flip side, you never want to get a vendor of yours business too addicted to just yours. It’s good to give them a lot of business. You can have a preference, send them most of your business, fine. Always make sure you’ve got a couple of others because if something goes wrong outside of your control and all of a sudden they can’t handle the incoming, then what?

Then you go running to the other title company, the other attorney, the other mortgage broker. You’re almost begging for them to take the business and you’re like, I haven’t worked with this company in a year. I’ve been sending all my business to the other company and you’re essentially freaking out. Don’t do that. If you do 10 deals a month and you want to send seven to the same title company, fine, but send the other three somewhere else. Same thing with a mortgage broker, same numbers. Don’t allow your business to become beholden to any single source.

It’s not smart to allow someone else’s to either. It’s good to give them a good amount of business. It’s good to load them up, but don’t go exclusive. That’s a little too far. That’s my tip of the day, my friends. This came up in the last two days and I wanted to talk to you all about it. Have a good day. Talk to you soon.