Starting up a family sub-prime mortgage business, please help

Starting up a family sub-prime mortgage business, please help

Northville, MI · Member since 2016 · 10 posts · 0 votes

My brother and I have recently decided to finally commit and launch our mortgage business. We just locked down a lease on a nice office building in a great location. The trouble we're having at this early stage is finding investors. 

My plan was to contact reputable realtors in my area and incentivize them to refer their clientele to our company for financing.

Does anyone know a legal method to this approach? I personally phone interviewed dozens of realtors and had a lot of positive responses seeking incentive for these referrals since as of now all they get is the occasional lunch and pat on the back.

Let me know your thoughts, thank you BP community!

0Reply
12 views

Most Popular Reply

Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
9y

Hint: don't use the term "sub-prime" in your business name or prospectus! Welcome to BP...

See this reply in the discussion

6 Replies

Jump to latestLatest
  • Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    9y

    Hint: don't use the term "sub-prime" in your business name or prospectus! Welcome to BP...

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

    are you talking about a HML company... that does not need to be licensed in your state to do commercial purpose loans ???

    gaining deal flow is very very tough right now in HML with so much competition. you need a lot of contacts in the industry.. hitting realtors aint going to cut it.

  • Northville, MI · Member since 2016 · 10 posts · 0 votes
    9y

    We're looking to service loans to qualified borrowers that have the capability to pay 20% down as well as acquiring basic background information to protect the foundation of our business. What is the best way to seek out venture capital?

    Also, wouldn't it be advantageous to leverage the clientele of solid realtors in the area by providing incentive for our referral?

  • Levi T.Pro Member
    Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    Why did you get an office building before you got the funding?! Get the investors, get the business model working, then go get the nice office when you have the money burning holes in your pockets.

  • Northville, MI · Member since 2016 · 10 posts · 0 votes
    9y

    The building my father owns and there is a vacant unit. No operating cost to us.. Just looking for ideas on investment capital. I thought my realtor idea was a good one. Just don't know what kind of incentive we could provide to put this idea in motion..

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    9y

    Realtors are looking for lenders that are knowledgable, know what they're doing, are responsive to questions and issues, offer the proper mortgage products for their clients, and can get deals closed....period.  Not the ones who say "yeh, we can fund anything", then the loan gets denied just prior to closing.  If you don't have the investors to fund the loans yet, you don't know what your underwriting requirements are going to be yet, so you really have no clue what you'll actually be offering yet.  As you should know, you can't legally pay agents for bringing you business.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.