At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.
When you reflect on your team’s performance, who comes to mind as the top agent, team, tech, or sale over the past year? The one whose success in luxury you want to celebrate. Who sets the bar within your brokerage.
Honor them as a top performer with a Golden I Club nomination.
Winning or being nominated for a Golden I Club award enhances your professional stature and affirms your team’s commitment to excellence in a fiercely competitive market.
This recognition showcases your achievements as synonymous with the pinnacle of luxury real estate, attracting high-net-worth clients and setting your brand apart.
At Inman Connect Las Vegas, July 30-Aug. 1 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.
Digital mortgage lender Better says it’s in growth mode again, hiring industry veteran Chad Smith to supervise operations at its mortgage unit and shifting to a commission-based compensation structure that’s allowed it to hire more experienced loan officers.
In reporting a $51 million first quarter net loss Monday, Better said Q1 mortgage volume was up 25 percent from Q4 2023, to $661 million.
The New York-based lender said it’s on track to originate $800 million in loans in Q2 as it ramps up spending on marketing and advertising while continuing to cut costs in other areas.
This year’s loan production will inevitably fall well short of the $58 billion in loans Better originated in 2021 at the height of the refinancing boom, and might not even equal 2023 loan volume of $3 billion.
But Better founder and CEO Vishal Garg says the company is now learning to find its way in a world where higher rates mean mortgage lenders do the vast majority of their business with homebuyers.
“We’ve adopted a new operating model and compensation structure for our sales teams, with lower basis and higher commissions to better align costs with volumes and drive conversion outcomes — and also enable us to recruit seasoned loan officers and empower them via our tech platform in a way we were never able to do before,” Garg said Tuesday on a call with investment analysts.
Better’s future, Garg said, “lies in Uberizing the loan officer, giving them leads generated by our proprietary tech platform and customer interface, and having them be more productive.”
Better boosted its refinancing volume by 232 percent quarter-over-quarter, to $79 million, and home equity line of credit (HELOC) lending also grew by 54 percent, to $53 million. While purchase lending grew by a more modest 12 percent, to $529 million, homebuyers accounted for 80 percent of Better’s loan originations.
The shift to hiring more experienced loan officers means Better’s loan officers are closing “significantly more loans per month” than other consumer direct lenders, Garg said.
Last year Better loan officers were able to close 17.7 purchase loans per month, compared to “mid single digits” for competing direct lenders, Garg claimed, citing a third-party benchmarking study Better participated in.
“One of the things that these experienced loan officers know how to do — that I would admit that our unexperienced loan officers that we hired primarily for our refinance business in the first 8 years of the company, didn’t know how to do — is talk to the Realtor and inject confidence into the product,” Garg said.
Better is currently advertising openings in sales, mortgage operations, finance, legal and compliance, human resources and data and analytics. Some positions can be filled remotely, while others are based at on-site locations including New York, Las Vegas and Irvine, California. A number of positions are based out or supervised by employees in Better’s offices in Gurugram, India.
“Better is growing again!” Garg posted in April on LinkedIn. “As we are scaling our loan officer teams, we are also looking to recruit sales managers.”
Last week Better hired Smith, who most recently was CEO of Irvine, Calif.-based Mission Loans, to oversee much of that growth.
Chad Smith
Smith, 49, who had previously held executive positions at Discover Home Loans, loanDepot and Caliber Home Loans, was appointed as president and chief operating officer of Better Mortgage Corp. by Better’s board of directors on May 8.
He’ll earn up to $2 million a year in base salary and bonuses, and is eligible to receive up to 8 million in restricted and performance-based shares in Better over a three-year period, the company disclosed Friday.
“With Chad’s valuable experience and deep expertise, I feel confident he will help drive our growth and contribute meaningfully to the success of better,” Garg said on Tuesday’s earnings call. “Chad will be responsible for helping us set our long term strategy and scale our marketing sales and operations teams as well as drive performance and accountability for delivering results that align with our strategic vision.”
While Better is investing in growing its direct-to-consumer business, business-to-business (B2B) business generated close to half (46 percent) of Q1 loan volume.
Better has had a strategic partnership with Ally Bank since 2019, and last fall announced it had teamed with Infosys to launch a “mortgage-as-a-service” platform for lenders.
In another B2B development, in Q1 Better launched a partnership with Beyond.com, which owns brands including Overstock, Bed Bath & Beyond, Baby & Beyond and Zulily.
Beyond.com customers can now shop for a mortgage with Better, earning those who take out a loan a free year of membership in the company’s Welcome Rewards program and up to $500 in Welcome Rewards points to spend at Bed Bath & Beyond.
Kevin Ryan
Better Chief Financial Officer Kevin Ryan said that Better’s “primary targets” on B2B are banks, but “a lot of banks have pulled back in mortgage — it’s been tough to make money for them.”
But home loans are “a core offering for their consumers and anybody who is in consumer banking wants to offer mortgage, and so our dialogues are very strong.”
Ryan said Better has a partnership with Mphasis, a provider of business process services to “hundreds of banks across the United States” which has facilitated introductions.
“The only thing to say about B2B is we love the channel,” Ryan said. Some banks are locked into long-term contracts with tech providers, so signing new partners takes time.
But “We’re going to grow the channel,” Ryan promised. “It’s a big focus of ours.”
Better execs are bullish on the prospects for growing the company’s mortgage business, but many investors remain focused on the company’s bottom line.
While Q1 revenue was up 26 percent quarter over quarter, to $22 million, that wasn’t enough to cover $73.6 million in Q1 expenses, down 30 percent from a year ago but up 6 percent from Q4. Spending on marketing and advertising was up 27 percent from Q4, to $4.6 million.
At just over $51 million, Better’s Q1 net loss was down 41 percent from a year ago, but only a slight improvement from Q4
Better had previously announced it would release first quarter earnings before the market opened Tuesday, but ended up releasing them the night before, after markets closed Monday.
Shares in Better, which in the last year have traded for as much as $62.91 on July 28 and as little as 34 cents on Oct. 13, were down 10 percent Tuesday, briefly touching a new 2024 low of 37 cents before rebounding to 42 cents at the close.
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Who are the standout individuals or teams at your brokerage continuously pushing boundaries and challenging the status quo? Are they discovering new ways to analyze behavior, revolutionizing client communications, or crafting innovative business models?
If someone at your brokerage embodies innovation, it’s time to nominate them for the coveted Inman Innovator Award.
Receiving an Innovator Award not only boosts your professional stature but also reaffirms your team’s dedication to innovation in a highly competitive market.
May is Commission and Compensation Month here at Inman. We’ll sort through the noise and misinformation and provide you with the most up-to-date facts and strategies about how to prosper in the wake of the commission settlements. And look for straight-to-your inbox updates with Inman’s new weekly digest, Commission Chronicles.
Pulse is a recurring column where we ask for readers’ takes on varying topics in a weekly survey and report back with our findings.
Last week, nationwide settlements Keller Williams, Anywhere and RE/MAX reached to resolve antitrust claims against them received final approval from Judge Stephen R. Bough.
As part of the deals, the franchisors agreed to business practice changes, including no longer requiring franchisees and their affiliated agents to join or be members of the National Association of Realtors (NAR) or follow the Realtor Code of Ethics or NAR’s MLS policy handbook.
This week, we’re wondering how you’re preparing for these changes. Have you started using buyer representation agreements? Did you shift from working with buyers to focusing on sellers? Have you shifted your marketing approach? Or are you simply waiting to see how it all shakes out? Tell us what your prep looks like.
We’ll compile a list of the top responses and post them on Inman next Tuesday.
At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.
Today’s dynamic real estate landscape presents a treasure trove of marketing strategies that defy convention without breaking the bank.
From the magic of face-to-face networking to the allure of unique partnerships, here are a few insights and cost-free tactics that can be leveraged to elevate your brand. When approached with care and vision, these marketing campaigns can resonate authentically and effectively.
1. Find the magic in mingling
There’s nothing like a face-to-face chat. In-person networking events are a bit old-school, but they can deliver real results — your next big collaboration, future speaking engagement or referral partner could be there. Plus, you can often find focused, local professional groups via social media that host in-person meetups.
Make time to attend these events to get your name out there and make more solid connections. Shake a few hands, take a genuine interest in others, and make yourself and your goals known.
Seek out events held by industry publications, and make sure to express your interest in future speaking opportunities. Offer to speak at events for free initially to gain exposure and build credibility, then leverage your growing reputation to secure paid speaking engagements in the future.
2. Seek out unique partnerships
Ever heard the phrase, “You are the company you keep”? It goes for partnerships in the business realm, too. Partnering up with brands and organizations that will resonate with your audience is a great way to expand awareness about your company. And, oftentimes, if there is a clear value-add for the collaborator, they can be cost-free.
For example, at our brokerage, we’ve partnered with luxury-centric companies such as 1stDibs and Kensington Tours. We offer special access and/or exclusive discount codes for their goods and services, which folks can obtain by working with (or connecting with) our real estate agents.
By teaming up with like-minded brands that also serve our target audience — and align with the lifestyle of our clients — we’re not just expanding our reach, but we’re also able to increase the exposure of both our brand and that of our collaborating companies. When collabs are done right, they’re a win-win.
3. Embrace thought leadership opportunities
Being a thought leader can be a great way to increase your professional profile and further establish yourself as an authority in your industry.
In addition to attending industry events in person to get your name out there, consider contacting the editorial team at an industry publication and see if you can contribute some regular editorials. Publications — particularly ones with a digital presence — always need content. You can suggest a few topics to write about or implore the editors to share what they might need.
You can also submit an opinion piece about the industry or a prescient business topic to the publication of your choosing; Just remember always to keep your tone respectful and thoughtful. The goal is not to alienate people but to spark interest and catch the eye of a potential client or partner.
In-person or virtual speaking events are also a great way to step into the spotlight.
Overall, the goal here is to position yourself as a go-to expert in the field and cultivate trust among clients and would-be clients.
4. Lean into social media and digital platforms
Put the digital world to work for you. Create Instagram Reels, or share regular stories that showcase your current listings and market insights. (This is free once you create an account.)
Always aim to serve up content that’s as engaging as it is informative. It’s all about balancing style and substance. Make sure to interact with your followers, too — ask what they want to know and what kind of market guidance they might like to see.
By creating a consistent digital presence that captivates and educates your audience, you’ll not only boost engagement — you’ll also cultivate brand loyalty and trust.
5. Foster genuine engagement through virtual events
Virtual events have become increasingly popular and cost-effective platforms for engaging with your audience.
Hosting webinars, Q&A sessions, or virtual tours of properties provides valuable information and fosters a sense of community and connection. We hold a monthly virtual ShaRE panel series that features knowledgeable guests covering a range of topics, from timely real estate news to engaging lifestyle content.
But, of course, what good is a discussion if no one sees it? Make sure to promote your virtual events across your social media channels, and consider partnering with complementary businesses or industry experts to widen your reach. Encourage participation through interactive elements, such as polls or live Q&A sessions, to make attendees feel involved and valued.
By embracing virtual events, you can extend your brand’s presence beyond physical limitations and establish yourself as a leader in leveraging digital platforms for real estate marketing.
These marketing strategies serve as powerful reminders that success in the marketplace isn’t solely determined by extravagant budgets. By prioritizing creativity, authenticity, and strategic thinking, businesses can effectively engage their target audience and achieve significant results, all while remaining budget-conscious.
Rainy Hake Austin is president of The Agency in Los Angeles. Connect with her on Instagram.
At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.
The National Association of Realtors (NAR) recently held its midyear conference in Washington, D.C. Midyear is where NAR members take an active role in advancing the real estate industry, public policy and the association.
I am active in real estate as a broker-owner, and sometimes I write too. I am also one of the 1.5 million members of the National Association of Realtors. I have been a member for 22 years. I have volunteered or gotten involved, as they say, on the local and state level, but just like approximately 99.84 percent of my peers, I am not on an NAR committee.
That doesn’t mean that I am not interested in what NAR is doing or that I don’t want to be involved. In fact, I have often wished that members could vote on important issues. Members should be informed, engaged, and interested in what the association is doing and should be exposed to the details of the hard and important work that gets done.
Missed opportunity
The midyear meetings were a missed opportunity. NAR could have engaged members like me, more than a million of my peers and more than 99 percent of all members by livestreaming more of the meetings, classes and events.
All the meetings could have been livestreamed. I would have paid a fee to attend mid-year conferences online. I cannot think of anything that NAR does that is more important than keeping its members informed and involved.
The meetings or events I was able to attend were well worth my time. If I learn something during a session that helps my business, I am more likely to stay in business and remain a member.
I may also come away with a more positive view of NAR and how its hard, hard work supports my business. Livestreaming meetings and other sessions seems like a win for members and the association.
Realtors benefit from being in the know
I rarely miss one of NAR’s Chief Economist Lawrence Yun’s economic updates. I learn so much and often take pages and pages of notes. Access to his economic analysis is a benefit that I appreciate and use. I have seen Yun speak in person a few times, but I get most of the updates via livestream.
Maybe 50 years ago, attending a meeting in person was the only way because we didn’t have the technology to livestream meetings or the internet for quickly sharing information and ideas.
Having 1.5 million or more people attend a meeting doesn’t seem doable or sustainable. The environmental impact of an event that large would be significant. Would there be enough food and lodging for all of us?
If the goal is to keep meetings more private from the prying eyes and ears of reporters, video recordings could be made of the meetings, and those recordings could be available to members only on the NAR website a week or two after the meeting.
However, most of the information many of us get about NAR is brought to us by reporters.
Some of the midyear meetings were by invitation only. In the past, I have been able to attend a few of those meetings virtually because I know people. You see, they won’t let just any member attend, but members who know someone can sometimes get in if they talk to the right people. It’s often about knowing the “right” people.
Pulled with no info
I had planned on watching a livestream of a legal update session. I saw the list of speakers and bookmarked the session.
The session was suddenly pulled from the livestream, and there isn’t any information about the update. Of the 1.5 million members, only 8,000 were in attendance at midyear, which means that the vast majority, more than 99.5 percent just like me, missed out on a legal update during this time of litigation and settlements.
Some of us are concerned about the future and about being sued. If we follow the new rules, will we face lawsuits in the future because of them?
When membership numbers are missing, live streams are canceled, or transparency is lacking, members and others can use their imaginations to fill in the gaps. It wouldn’t be hard at all to create some believable conspiracy theories.
NAR doesn’t make it easy for the more than 99 percent of members who don’t attend midyear meetings. We not only make up most of the membership, but we are almost all of the members, and livestreamed meetings and events are opportunities for NAR to engage all members.
