I wanted to get some feedback about simultaneously working as a selling agent and a mortgage broker (e.g..Finding a property for someone and financing it for them, and getting paid for both activities). Do you guys think most investors would shy away from that or be receptive? Is it even legal to act as both the selling agent and mortgage broker? Any opinions are warmly welcomed.
Matt, I can tell you that Realtors wouldn't shy away, they would run away! A mortgage broker has access to bot sides of a deal, that means you'd be seeing the buyers and sellers a Realtor works with. Buyers are then known to set up future sales, 3, 5, 7 years later, sellers are known who might be buying, quickly or you'd know they were investors.
It's also a conflict of interest from the mortgage broker side, you can disclose yourself away, but the buyers of those loans will not see your origination being at arm's length as you'll have an interest in the origination.
I began my mortgage company as an in-house brokerage in a large realty firm. My parents were agents there. The other agents would come in a pick my brain but were very protective about their clients, it took awhile to build that trust and just telling them, that I didn't talk to my folks about my business or other's. When I moved out in my own office, they then began to trust that I had no relationship with my folks. If it had been me as the agent, it would not have worked at all!
Realtors will see the same thing, even if you act independently as an agent, you're out there competing for customers and then asking them to trust you to get their deals done for them, no, won't happen.
Working with just investors wouldn't be worth the time really, the deals you might originate would be residential, secondary market, your investor clients will be limited to the loans they can get and then they go commercial. You won't be a commercial broker out of the gate as a newbie, third party originations just aren't done as they use to be and bigger deals will require experience.
You need to pick one side of the fence or the other! :)
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.