Posted by John Behle on June 02, 1999 at 13:05:03:
You don’t have to work through another broker. Neither of the two you mention sound like they are a direct funding source. You can work direct with funding sources like American Note or Metropolitan Mortgage. You may want to make contract with them and learn how to work with them.
Collection of Paperwork - Posted by Ed Swartz
Posted by Ed Swartz on June 01, 1999 at 07:51:49:
Oops, I didn’t realize there was an editorial policy about anonymous posts. My post on Sat was removed. So, here’s another try at it.
Newbie Question:
My intention is to flip the first few notes to a national buyer. I figure this will help me learn the process and get a few bucks for when I start buying for my own account.
A national buyer indicates that they will pay $1000 for a lead. They’ll do all the negotiating and collection of paperwork. A second firm indicates that they’ll collect the paperwork and locate a national buyer with the best price. This firm will split the commissions 50/50.
I’ve heard that commissions are about $4K for a deal in the $50K to $100K range. Therefore, firm #1 would be making about $3K in commissions and firm #2 would be making $2K in commissions. Over 5 deals that’s $15,000 and $10,000 respectively.
I do believe that people with expertise should be compensated for their time and efforts. However, $15K/$10K seems like a very expensive education.
Is the collection of paperwork really that difficult that it’s worth going to these firms for the 1st few deals ?
Should I try to do the first few deals on my own even if I screw them up and lose the deal and the commissions ? Perhaps I’ll learn more since I’ll be actively involved the in process.
Ed Swartz