Just passed my broker exam through Lee Arnold systems. Excited but nervous.
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There is no such thing as a “certified” broker, @Paul Tee. You are either licensed by states requiring a license or you’re not. Every state is different. WA, for example, requires that you take 20 hours of state-sponsored classes and pass a state-sponsored test. WA does not recognize your “certificate” from Lee Arnold. Nor does any other state.
I have to hand it to Lee. He charges a lot of money for what all other lenders offer for free. Lee Arnold offers what most lenders call an affiliate program. Here, you are really a salesperson representing his company, with knowledge of his terms and other lending criteria that he somehow convinced you to pay for. Why would you do this?
Many hard money lenders are happy to educate you about their program for free so you can refer borrowers to them. Go to the website of some large hard money lenders and you will often find a link that says “Affiliate.” Ask what info you need from each other to learn their process and what fee they will pay for deals that close. You don’t pay to become an affiliate. On the contrary. Many of those on this board who call themselves lenders are really affiliates.
So long it’s done legally in your state, there is nothing wrong with being an affiliate and receiving a fee. You just can’t use it to misrepresent yourself as a broker. I know that’s not your intent, but you don’t seem to understand what you paid for. Didn’t Lee Andrews explain state licensing restrictions to you and the value if his certificate?
5 Replies
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Quote from @Paul Tee:
How have you brokers got your first deal after getting your certification or what were the first steps after passing your exam? I read online that apparently for WA state there's a state and national broker exam. Do I have to take those also after just taking mine through Lee Arnold?
What did you actually get through Lee Arnold? Did you take his loan broker program?
Was it this:
Master Private Money Brokers | The Lee Arnold System | Partner & Profit
If so, it is my understanding that gets you nothing but a certificate through his course and is a marketing piece.There is no such thing as a "Master Broker certification" Its made up. It would be like being trained by a neighbor on dog walking and them giving you a piece of paper calling you a certified dog walker.
7e investments53 Reviews There is no such thing as a “certified” broker, @Paul Tee. You are either licensed by states requiring a license or you’re not. Every state is different. WA, for example, requires that you take 20 hours of state-sponsored classes and pass a state-sponsored test. WA does not recognize your “certificate” from Lee Arnold. Nor does any other state.
I have to hand it to Lee. He charges a lot of money for what all other lenders offer for free. Lee Arnold offers what most lenders call an affiliate program. Here, you are really a salesperson representing his company, with knowledge of his terms and other lending criteria that he somehow convinced you to pay for. Why would you do this?
Many hard money lenders are happy to educate you about their program for free so you can refer borrowers to them. Go to the website of some large hard money lenders and you will often find a link that says “Affiliate.” Ask what info you need from each other to learn their process and what fee they will pay for deals that close. You don’t pay to become an affiliate. On the contrary. Many of those on this board who call themselves lenders are really affiliates.
So long it’s done legally in your state, there is nothing wrong with being an affiliate and receiving a fee. You just can’t use it to misrepresent yourself as a broker. I know that’s not your intent, but you don’t seem to understand what you paid for. Didn’t Lee Andrews explain state licensing restrictions to you and the value if his certificate?
- Real Estate Consultant · Port Orchard, WA · Member since 2017 · 33 posts · 13 votes2mo
Which hard money lenders have the best affiliate programs? Anyone have any experience or insight?
- Specialist · NJ · Member since 2022 · 1k+ posts · 656 votes2mo
Most states do not require a license for Hard/Private Money because they are non owner occupied. It's an investment, not a primary home. There are some states that require an MLO license, but it is state by state for hard money. There's a few that require the license. But even with an MLO license, Someone licensed in CA can not originate a mortgage in Texas for example.
I am licensed in Insurance as well and I know after passing the exam of your state you can apply for licensure in other states without taking the exam again, not sure if the MLO license does the same or not.
But, where do people find deals? Lots of different places. You can buy leads. In this industry it is a common thing. You give yourself people to call and if you land 2% - 3% then you grabbed a few clients out of every 100 you call.
Social media presence doesn't hurt, but it doesn't guarantee anything either. Very saturated market.
You have warm leads, which are people in your world. Friends, family, friends of friends, referrals, etc.
If you get an MLO license though, you will find lenders that have someone else do all the cold calling and setting of the appointments, you just run the appointments. Those jobs are out there, so now you are sitting with someone who has interest in a mortgage. But these would be for primary houses, not investment houses.
If you are saying, how do you build up a hard money business? It's not easy. Like I said, it is very saturated. These industry is not starving for another hungry broker. If I throw a stone, I will hit one on the head. Why? Because the barrier to entry is very low. For hard money it is signing up with a lender, for primaries it is passing a state exam that is not hard and you only need 70%. So get a C- and you get your license.
I'm sure this seminar told you or they should have, join your local REIA. But know they have standards and won't just let you spam their group with lending flyers. They charge. But you can go to meetings and get to know people. Talk. Learn. Be a familiar face. Get educated, so you can educate others. You want to be someone that helps and offers advice. Hey, let me ask Paul T id there is a lender who would fund this scenario. That's what you want people to say.
Just know though, there's literally fifty thousand of you, me, us. Whatever. It's not easy.
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