To partner up with mortgage broker for advertising

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To partner up with mortgage broker for advertising

Kasia Sliwa
Residential Real Estate Broker · Lake In The Hills, IL · Member since 2015 · 9 posts · 1 vote

I am a fairly new Real Estate agent and I work in Northwest Suburbs of Illinois ( Algonquin, Lake in the Hills, Crystal Lake and surrounding suburbs) and I am thinking of new ways to advertise and send postcards/flyers to renters hoping to attract first time/after foreclosures etc... home buyers. I would love to partner up with mortgage broker and do advertisements ( 50/50)  together. This way we can split the cost and it will still reach lots of home buyers and I think it looks better when you advertise with some other professionals.   Please let me know if any new mortgage brokers or experience one's would like to do that and we can meet up and discuss this great opportunity for both of us.   Thank you and I hope everyone here has Great New Year ! 

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Emily Terrell
Real Estate Agent · Saint Hedwig, TX · Member since 2016 · 15 posts · 8 votes
9y

@Jay Hinrichs In Texas we are able to partner with lenders.  It was actually at my brokers suggestion that I initiated working with lenders.  As long we offers suggestions for more then one lender or other professional.  Even then it is not required, just reduces your liability.  But Thank you for looking out.  i cannot comment on other states since I am not licensed there. 

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  • Emily Terrell
    Real Estate Agent · Saint Hedwig, TX · Member since 2016 · 15 posts · 8 votes
    9y

    Hi @Kasia Sliwa.  I am not a Mortgage Broker either, however I do partner with them all of the time for advertising.  I would recommend meeting with some in person and interview ones that you know do a great job and that you get along with.  I have seen so many agents start doing a long term marketing plan with LO's and Mortgage Brokers and they end up not working well with them.  

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Emily Terrell  ladies in most states this is illegal suggest you check with your brokers before doing this.  Mortgage lenders have a very short leash in this regard .. just like title companies..

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  • Emily Terrell
    Real Estate Agent · Saint Hedwig, TX · Member since 2016 · 15 posts · 8 votes
    9y

    @Jay Hinrichs In Texas we are able to partner with lenders.  It was actually at my brokers suggestion that I initiated working with lenders.  As long we offers suggestions for more then one lender or other professional.  Even then it is not required, just reduces your liability.  But Thank you for looking out.  i cannot comment on other states since I am not licensed there. 

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Emily Terrell  its common to co brand but you have to keep finances separate.. there are federal laws relating to that.. at least that is what I have learned in my mortgage banking continuing ed.

    Like you can't tell a lender hey I will send you loans pay me 3k a month for my advertising.. that sort of thing same with title and escrow.  but then again Texas is another animal LOL

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  • Emily Terrell
    Real Estate Agent · Saint Hedwig, TX · Member since 2016 · 15 posts · 8 votes
    9y

    Yeah @Jay Hinrichs.  I am very specific with how I co-brand with lenders.  I also do not ask them to "give" me money directly.  They can contribute to some marketing materials I am putting out, but they will not just pay me money directly.  Also, I do not tell me that they have to use said lender, just there is a lender here.  

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  • Account Closed
    Lender · Richmond, VA · Member since 2017 · 47 posts · 10 votes
    9y

    Hi.

    When it comes to to working with lenders, mortgage brokers, or any other potential partner, I would do a deal like this:

    You give the lender a bunch of your cards, and every commission check you make from a referral from the lender, you give him/her a % of the check.

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  • Chris MasonPro Member
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    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    9y

    Hi @Kasia Sliwa,

    • RESPA is a minefield, be wary.
    • Anyone talking about 50/50 with you is clearly desperate and bad at math. You know that we don't make 2.5% to 3% of the loan amount, right? Nowhere close. It would be foolish to split any expenses 50/50 - even if it's deemed RESPA compliant. Basic math tells me that. Be wary of a lender that can't do basic math. Or, hell, take them to the cleaners if they wish to act that foolish, but again the risk here is that you're deals will only close if someone you know to be bad with numbers does their very numerate job well.
    • Most firms have very cost effective RESPA-compliant email drip campaigns. Ours is $35 for 3 years, unlimited use, unlimited leads, and 3 years of co-branded post-close postcards. Well, to be clear, those postcards are going out no matter what, it's just $35 if you want your contact info on them (again, unlimited # of clients). :P Just to give you an idea of what is out there. 
    • I'd caution against anything involving large sums of cash exchanging hands. If there's a reason it can't/shouldn't be documented and fully disclosed to regulators, it's probably best not to do it.
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  • Chris Quinn
    Realtor · College Station, TX · Member since 2016 · 128 posts · 68 votes
    9y

    I know this thread is a couple months old, but wanted to jump in. I too am in Texas and looking into co-branding with a lender. He has been in the loan business 10+ years in multiple facets, I've known him for 15 years. He has been killing lately and offered to do a 50/50 split on ads, probably mail outs and maybe a small localized online campaign. This would be a full above the table kind of thing, not sure about how to set up who pays who or we both just pay the vendor seperately. As stated before, it's my interpretation that I cannot force a client to go anywhere but I can certainly have him be at the top of my suggested list, again to protect my liability should something go wrong on his end. This is merely to get both of ourselves out there while reducing costs for each other. I see it as favorable on a consumer as they are knocking out two of the bigger hurdles at once (representation and $$$). 

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