Where the Rich People Are Moving and Why You Should Care

A recent article in Forbes magazine analyzed IRS data to find where the rich people are moving. The analysis is by county and the number one county was Collier County, Florida, where Naples is situated. The second place county was Greene County, Georgia, between Atlanta and Augusta.

What can you do with data like this? If you are deciding where to relocate to start up your mortgage origination business, you want to pick a place where there are plenty of people who can afford to buy houses. You also want buyers who have more expensive houses, because those houses have larger mortgages. The same thought process should be used if you are not relocating but looking to expand your business. Which states are the most lucrative? Which states have the cheapest level of entry? If the state you are considering does not require a brick-and-mortar presence, that will save you a ton of money in start-up costs. Can you meet the other licensing requirements – number of years in the industry, surety bonds, passing another exam?

If you are not moving to your new states, how will you get new business? Networking, of course. Do you know anyone in those states who can introduce you to real estate agents, builders, accountants, and other referral sources? Can you use LinkedIn or Plaxo to find referral sources? How much would traditional advertising cost you? Can you form a strategic alliance with other mortgage professionals and community banks in the new states in which you want to do business?

If you have never thought about originating mortgages outside of your home state, this may be a good time to start investigating your options. The mortgage world is changing and you must change with it or it will leave you behind.

Contact Robin Gronsky at Rgronsky@Gronskylaw.com if you want to explore expanding into new states. I’ll keep what you tell me confidential but I cannot give you any specific legal advice until you become a client of the firm. This is done by written agreement only.