Posted by Ed Garcia on December 17, 1999 at 10:10:46:
(1) Being a mortgage broker does not effect or hinder me from doing deals. By the way, a
Real-estate broker can do deal with the next guy, they just have to disclose that their realtors.
So the key word here is 'DISCLOSURE.
(2) I never have been a loan officer in the deal that I have been involved in, in the manner
you have stated your question. However, I have put up the money to be a partner in a deal.
This is done every day, so I don’t see a problem with it.
(3) Commission splits differ from company to company. Some companies provide the leads
to their loan reps, others don’t. So right their you can see a difference. A company that is
providing the leads, is spending money for advertising to get those leads.
I have seen splits from 30% to 100%. The company that pays 30% provides the leads, provides
medical insurance, pays a gas allowance, and expenses allowance as well. The company that
pays 100%, charges you for your desk and expenses, and you have to use their programs.
The advice I can give you, is that being in the business sometimes can have many advantages
when doing a deal. It gives you two opportunities to make money. If you go to buy a property,
lets say a foreclosure or what have you, If you can’t buy it many times you have an opportunity
to refinance it for the seller so they can keep the property. You therefore can make money on
a property that you didn’t even buy. There have been times I have went to make a loan on a
property and ended up buying it, and visa versa.
I hope I have answered your question,