Cycles and Working with Advisors

As house prices go up...

Down payments go up.

When house prices go up, more Realtors enter the market... this will likely shift if house prices normalize or turn negative.

Financial advisors have cycles tied to asset prices. During the 2008 crisis many felt the stress and retired from active management (my advisor did). It took a few years for them to transition out but by 2012 the industry rebuilt... and it's trended up as asset prices have risen.

It's very difficult to find charts on the number of loan officers by year. I'd guess they too have gone up as the market has increased.

TIP: If I were starting a new business today, I'd be focusing exclusively on the financial advisory space. Why? The client mindset for one.

*What Financial Advisors clients are want from them:

Trusted partnership

High ethical standards

Knowledge and expertise

Puts their needs first

Easy to work with

*Absolute Engagement, Investment and Wealth Institute Study

Why? The advisor mindset for another - they are more professional to work with and appreciate professionalism.

Why? The client cycles are more widespread. It's not up and down refinancing - there are many live events that they manage and those events require lending services.

Why? They can be a tough nut to crack, but once you have a relationship, you won't lose it easily.

Why? If you start now in a year you'll have a new network of referral sources that aren't correlated with your current referral sources - leading to less volatility in your business.