Question regarding wholesaler & broker relationship

I am still working on getting started. I started gathering my thoughts about anyone I know that could help me. I remembered working with a lady some time back at a bank. She used to have an RE license, but never practiced. Since then, she has left the bank. I emailed her just asking if she had access to the MLS, etc. She stated that she no longer had access personally, but that on the weekends, she works for a friend of hers that is a mortgage broker. She has access to the MLS through her.

We exchanged emails a little and I quickly realized that I could possibly have a very valuable resource. Because I don't know a lot about real estate as an "industry", I am not completely aware of how this could benefit me.

So, my question is two fold...what kind of help can I get from a mortgage broker. How can a wholesaler utilize this resource.

Secondly, how do I compensate? I mean, what's acceptable? I will have to generate some cash first (she's offering to help me for free, but wouldn't dream of that) in order to pay her anything...so, what can I do in good faith? I mean, she and I worked together for a few years. We know each other well, so that's not a real issue (the trust factor). I just want to make sure I maximize the relationship and that I compensate her well.

Thoughts?

Edited: 06/26/2010 at 10:18AM

Jon Zorrer

Real Estate Investor · Rahway, New Jersey

49 posts
210 Influence
1 Award

Icon_minipost Oct 30 '09, 08:47 AM

Unless the mortgage broker is a real estate agent as well I do not think that they have access to the mls. They may have access to comps through appraisers.

Mortgage brokers are good people to connect with for a few reasons. #1 When people get in trouble they will 99% of the time try to call a mortgage broker 1st to refi. If they can not get a refinance then the loan officer can refer that client to you if that person needs to sell. #2 They are great at finding buyers retail and lease option deals. If a L/O has a buyer looking for a house or a realtor they work with has a buyer they can refer that person to you. They know you have good deals so why not. With buyers who do not qualify for a conventional loan if you do any type of creative investing you can have them refer you those buyers for lease options.

Edited: 06/26/2010 at 10:18AM

Chris Speights

Real Estate Investor

39 posts
246 Influence

Icon_minipost Oct 30 '09, 10:07 PM

These are all good ideas, thanks Jon! I don't know the "norm" for brokers & MLS, but this one does have MLS access. I don't know if it is her own personal sign in information or not. My friend is running me a list of expired listings right now.

I have never thought about them referring business to me...that's a good idea.

Anything beyond wholesaling is a bit over my head for the time being. Well, not over my head, I just haven't researched much of anything else yet.

Anyone else? Any other ways brokers can benefit wholesalers? Anyone on the question about compensating brokers?

Thanks again!

Chris

Edited: 06/26/2010 at 10:19AM

Bill Gulley

Real Estate Investor · Springfield, Missouri

4889 posts
43266 Influence
12 Awards

Icon_minipost Oct 30 '09, 10:57 PM

Hi, Brokers are good people to know as stated. Compensating a broker is OK, but you need to go about it in the open and don't expect them to give you personal details about their clients, just as you might talk to a loan officer at any bank.

When I was a broker and people were in default, I simply suggested to them that they contact an investor I knew and offered to introduce them. I'd simply tell them that this guy might be able to help you. I also had loan officers at banks do the same thing for me. My first approach was to refi them, but if that didn't work I then moved on to other alternatives to cure the situation.
Brokers who sell in the secodary market may never know if a loan they originated goes into default, it depends on the servicing agent and the nature of how the mortgage was originated, with or without recourse.
Soon I suspect, there will be underwriting requirements for seller financed deals and a broker is in a good position to provide additional services. You might point this out to them and provide them with a source of underwriting business. Just a though along the compensation lines.
If you need more information about a relationship with a mortgage broker, fell free to contact me. Good Luck, Bill

Edited: 06/26/2010 at 10:19AM