Just passed my broker exam through Lee Arnold systems. Excited but nervous.

[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?

[Jeff S.]

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?