Re: Bad experiences/Questions–MORTGAGE BROKERS!! - Posted by Russ Sims
Posted by Russ Sims on September 20, 2004 at 14:23:59:
I really feel your pain. So many mortgage brokers will tell you what you want to hear, but can they deliver?
Do you have any other investors in your area that you could ask for referrals? That’s probably the best way to get the name of a mortgage broker who can deliver.
When we shop for a broker, we tell them that we’ll give them one of our tenant/buyers to work with on financing. If the broker can deliver on that one, well give him/her another one. If that one goes through,we tell him he/she can have the names of dozens of our tenant/buyers (to be contacted only after we get permission from t/bs to give their names out).
When we refer a T/B to this broker, we let T/B know that they are not required to use this person, and that we have no affiliation with this broker/comapny. We make it clear that if at any point the t/b does not feel comfortable with the broker, they can bail with no hard feelings from us. The problem with refering is that if the broker screws up, it reflects poorly on you. In some tenants eyes it becomes your fault they can’t get financed. This is not the attitude you want them to have. On the flip side, if the t/b goes shopping for their own financing, who knows what they’ll wind up with? If they go with your recommendation, at least you know that broker will have the motivation of wanting the rest of your business. In theory they’ll work that much harder to close the transaction.
Ask brokers how long they’ve been in business. Do they have a physical office or do they work from home? Can they give you a list of satisfied clients? Do they have specific experience with financing lease/options?
Who has the biggest ad in the phone book. Chances are they arte among the most experinced brokers in your area. Hope this helps!