Realtors loaning commission @ 2.25% rate post closing 2nd mtg
Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes
Realtors loaning commission @ 2.25% rate post closing 2nd mtg
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Residential Real Estate Broker · Miami, FL · Member since 2014 · 214 posts · 106 votes
8yI pretty much answered your post with my reply and you replied back with the same points.
However, I'm noticing you use a lot of the same key words together when they aren't grammatically required, which means you are blogging to gain SEO in certain key words.
In fact, a lot of your posts reference realtor rebates. So when people on the internet are searching these terms, you are hoping they find your name & contact info for referalls. Not a bad strategy, but I'm not going to keep responding to these types of posts. The whole premise is insane and no one has even thought of this idea, loaning your whole paycheck at 2% for 30 years to a buyer. Its just something you wanted to write about to get a long topic going with lots of replies and SEO/web traffic.
With regards to 'thousands of agents offering this', that is another fallacy. Realtors who work hard aren't giving their paychecks back to their buyers who normally make more money than them. And we DEFINITELY aren't giving our commissions back to our investors who take 1+ year to buy a property.
You also seem to have the opinion that agents don't do a lot, get a referral and make an easy 10K. Yet I would say its the realtors that bring the business to mortgage brokers, so the reverse could be said (all you did was push paperwork for the client I sent you, why should you make 2 points on my buyer's loan when I did all the work). Research actually shows that of the top 10 jobs to be eliminated in the coming years due to technology, it shows Mortgage Brokers, Not Real Estate Agents. Sorry :-(
The Whole VA/USDA/97% lTV doesn't really apply to this website either, (which again you seem to be typing in order to get active discussions going). Almost everyone on here, unless they live in the duplex, are investors who want to find well performing ROI properties and they require AT LEAST 20% down. And investors aren't getting 100% USDA loans on multi-family properties so why even bring it up? just to pepper your posts with seo-friendly keywords?
Best of luck to you man but we'll keep working hard and earning our paychecks.
39 Replies
- Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes8y
I respect I respect your comment and encourage more.
What if a new realtor were to solicit mortgage brokers for their pre-approved buyer referrals and offer them the same rebate to pay borrowers closing cost?
3 sales a month at $5,000 per sale = 15,000 of income
Is this not enough for a realtor to make from Easy pre-approved buyer referrals from the mortgage broker?
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Account Closed:
@Jay Hinrichs, that's your view as a successful, conservative, likely perfect credit, substantial reserves, very seasoned borrower / investor / lender / realtor.
I'm speaking to the average BP Investors who can use these strategies to get a boost during this very special time in Florida real estate history to have Bigger Pockets!
I'm also speaking to you Mortgage Brokers here on BP who are emailing me with questions, who agree with what I'm sharing to BP Investors. However, because of 20 yrs of doing things the same way, they're so tied to Realtor referrals, they're afraid to even say the two words Realtor Rebates, much less vote on my posts or ask questions about the subject on any forum.
What I'm doing is showing how Realtor Rebates can be incorporated into the purchase loan to benefit their Borrower/ Buyers and to give even the newest or weakest Mortgage Broker an UNFAIR advantage over the Big Banks!
I don't see how a 2% loan helps investors ??? most need 20 to 25% down and they should do that.. or they should pay cash and refi.
lack of liquidity in real estate owners and reserves is just a dangerous place to be.. and Florida led the hit parade in failed real estate investors along with Vegas PHX ATL and central CA and inland empires..
I get it on the owner occ.. what always amazes me is this scenario.
we send buyers to their loan officer.. they prequel them for a 500k home.. that's max..
they go shopping do you think they shop for a 350k or 400k.. NOPE 500k.. they super size it.. there is no conservative nature in 90% of these folks and that's why you have these folks in financial straights many times .. needing credit repair .. failed marriages etc etc.
the inability to control their personal financing.. they should all be listening to Ramsey.
Investors now are a different class completely.. you cant in todays day and age be an investor with only a few grand to buy a home like a homeowner can.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Marc Middleton:
I pretty much answered your post with my reply and you replied back with the same points.
However, I'm noticing you use a lot of the same key words together when they aren't grammatically required, which means you are blogging to gain SEO in certain key words.
In fact, a lot of your posts reference realtor rebates. So when people on the internet are searching these terms, you are hoping they find your name & contact info for referalls. Not a bad strategy, but I'm not going to keep responding to these types of posts. The whole premise is insane and no one has even thought of this idea, loaning your whole paycheck at 2% for 30 years to a buyer. Its just something you wanted to write about to get a long topic going with lots of replies and SEO/web traffic.
With regards to 'thousands of agents offering this', that is another fallacy. Realtors who work hard aren't giving their paychecks back to their buyers who normally make more money than them. And we DEFINITELY aren't giving our commissions back to our investors who take 1+ year to buy a property.
You also seem to have the opinion that agents don't do a lot, get a referral and make an easy 10K. Yet I would say its the realtors that bring the business to mortgage brokers, so the reverse could be said (all you did was push paperwork for the client I sent you, why should you make 2 points on my buyer's loan when I did all the work). Research actually shows that of the top 10 jobs to be eliminated in the coming years due to technology, it shows Mortgage Brokers, Not Real Estate Agents. Sorry :-(
The Whole VA/USDA/97% lTV doesn't really apply to this website either, (which again you seem to be typing in order to get active discussions going). Almost everyone on here, unless they live in the duplex, are investors who want to find well performing ROI properties and they require AT LEAST 20% down. And investors aren't getting 100% USDA loans on multi-family properties so why even bring it up? just to pepper your posts with seo-friendly keywords?
Best of luck to you man but we'll keep working hard and earning our paychecks.
Touche' my point exactly if you don't have 20% down AND reserves you are not ready to be an investor.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Jay Hinrichs:
Originally posted by @Marc Middleton:
I pretty much answered your post with my reply and you replied back with the same points.
However, I'm noticing you use a lot of the same key words together when they aren't grammatically required, which means you are blogging to gain SEO in certain key words.
In fact, a lot of your posts reference realtor rebates. So when people on the internet are searching these terms, you are hoping they find your name & contact info for referalls. Not a bad strategy, but I'm not going to keep responding to these types of posts. The whole premise is insane and no one has even thought of this idea, loaning your whole paycheck at 2% for 30 years to a buyer. Its just something you wanted to write about to get a long topic going with lots of replies and SEO/web traffic.
With regards to 'thousands of agents offering this', that is another fallacy. Realtors who work hard aren't giving their paychecks back to their buyers who normally make more money than them. And we DEFINITELY aren't giving our commissions back to our investors who take 1+ year to buy a property.
You also seem to have the opinion that agents don't do a lot, get a referral and make an easy 10K. Yet I would say its the realtors that bring the business to mortgage brokers, so the reverse could be said (all you did was push paperwork for the client I sent you, why should you make 2 points on my buyer's loan when I did all the work). Research actually shows that of the top 10 jobs to be eliminated in the coming years due to technology, it shows Mortgage Brokers, Not Real Estate Agents. Sorry :-(
The Whole VA/USDA/97% lTV doesn't really apply to this website either, (which again you seem to be typing in order to get active discussions going). Almost everyone on here, unless they live in the duplex, are investors who want to find well performing ROI properties and they require AT LEAST 20% down. And investors aren't getting 100% USDA loans on multi-family properties so why even bring it up? just to pepper your posts with seo-friendly keywords?
Best of luck to you man but we'll keep working hard and earning our paychecks.
Touche' my point exactly if you don't have 20% down AND reserves you are not ready to be an investor.
so not to feed the trolls I will no longer offer my very valuable conservative advice on any thread that this loan broker posts. I don't know squat about SEO but I understand what your saying and its clear once you explained it..
- Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes8y
will someone please me what the heck s e o means as I actually believe it or not don't know what it means
I'm just a dummy mortgage broker
- Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes8y
Here's option for tthis Topic discussion.
What if the realtor was to charge an interest rate of 10% on that post-closing loan of commission?
This could be a win-win for the realtor and the buyer and a no closing cost loan of $15,000 at an interest only payment
This is going to come in handy for a lot of BP investors
- Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes8y
To BP investors
If you ask for this post-closing loan from the buyer's agent, just make sure you make those payments on time by check and make them early because if you go to refinance they have to be paid off at the closing.
And since it's a l second or even third mortgage on the property you have to prove that you've made the mortgage payment on or around the first of each month by 12 months checking account statements.
Best to make it automatic deposit into the Realtors checking account.
- Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes8y
@Jay Hinrichs, sorry you feel that way, but the door remains open for your comments.
Getting back to the Topic discussion, another way is to offer the buyer agent a 12.00% interest rate of return to loan the entire 3 Points buyer agent commission.
@Tom Gimer, if you were the closing agent on a $500k purchase, what would estimate the costs to close and record the a $15,000 post-closing 2nd mtg. Equity Loan for the buyer would be?
Loan & Term:
$15,000 Real Estate Commission loan to buyer
12.00% Interest to Realtor
360 /60 Balloon
$154.30 P&I mo.
- Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes8y
Apparently, from what I'm hearing, there are realtors in FL willing to loan out 2% of the 3% commission that listed properties are offering in Palm Beach County, Broward, Miami/Dade, Sarasota, Naples, Tampa Bay & Orlando.
It's a post closing, 2nd lien cash out loan that can go behind a 97% LTV purchase loan, basically up to 99% CLTV with rates in the 2 to 3 range on a 360/60.
In theory, the buyer could purchase a $463,000 home, with closing costs paid thru seller credit, with only about $14,000 out of pocket to close
Then get an equity loan from a realtor, post closing for $13,000.
- Investor · Lake Worth, FL · Member since 2014 · 378 posts · 184 votes8y
Trying to follow your math here Steve. 2% of the 463000 is only 9260. Am I missing something and I hadn't heard about that deal yet do you know who is doing it? thanks and what terms would they be giving for the loan (short or long term?)
- Investor · Lake Worth, FL · Member since 2014 · 378 posts · 184 votes8y
SEO = Seach Engine Optimization google adwords , etc.
- Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes8y
@Charlie DiLisio, please don't give me such credit as I'm dum-mer than a box of rockx when come too cumputor stuf.
You'd laugh watching me type with my left index finger and my right hand middle finger and thumb, looking down at the keyboard to hunt and peck.
If you are assuming I'm somehow doing this SEO thing, I'm not. In fact, up until now, I didn't even know what SEO stood for.
As far as your question, its from 2% to 3% of the commission is what I've found buyer agents are willing to loan post closing.
- Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes8y
There are a few lenders that will allow a simo purchase money 2nd mtg to 83% cltv held by the by the buyer's agent.
80% LTV 1st mtg thru lender
3% LTV 2nd mtg thru Buyer Agent
83% CLTV
The buyer agent can offer the 3 Points commission loan on a 12 or 24 mo. balloon.
$12,000 less out of pocket can come in very handy post closing for repairs and upgrades
This can be a Win Win for everyone.
- Investor · Lake Worth, FL · Member since 2014 · 378 posts · 184 votes8y
Got it, thanks Steve.
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