Depending on the type of real estate investing business you are conducting a Mortgage Broker may be one of your most important Dream Team members.
If you are using your own credit and ability to borrow to buy houses, a great Mortgage Broker that get loans done with competitive rates and reasonable fees is of the utmost importance. If you are trying to sell your properties to retail buyers or offering your properties to Tenant Buyers who will ultimately need to get a loan and cash you out of your property a great Mortgage Broker that can help your buyers is also extremely important.
However, if you buying houses with cash or with Owner Financing for long term rentals or doing more creative strategies like buying houses “subject to” the existing mortgage then a great Mortgage Broker is significantly less important.
Mortgage Brokers usually are not lending their own money like a Mortgage Banker might. Instead a Mortgage Broker is usually taking information about your credit history, financial statement, income and expenses and matching you with the current loan programs being offered by a wide assortment of lenders.
It is important to note that while some Mortgage Bankers will argue the benefits of what they offer over a Mortgage Broker, the end result for you is often very similar if not the same. They often will argue that because they are lending their own money they are more reliable and can offer you things that Mortgage Brokers can not. It has been my experience that most Mortgage Bankers are selling their loans after to the same places that the Mortgage Brokers and their sources do, so this is just sales presentation and not actual fact. Are there exceptions to this? Sure, but it has not been my experience. My experience is that there are great Mortgage Brokers and great Mortgage Bankers and there are horrible Mortgage Brokers and horrible Mortgage Bankers.
Now that you've been exposed to my comments on Mortgage Bankers and Mortgage Brokers, I will admit that I tend to use the term Mortgage Broker to mean all people that you, as a Real Estate Investor, can go to when you are looking to borrow money to buy a property.
To find great Mortgage Brokers I strongly recommend that you ask other Real Estate Investors, Real Estate Agents and Real Estate Brokers. Since these folks rely on Mortgage Brokers to get loans closed, they often know which ones consistently can get the job done and at reasonable rates. If you're looking in Northern Colorado, you can also look at my personal referral directory for mortgage brokers to find out that I recommend. When you are talking to potential Mortgage Brokers for your team, you may want to use the Mortgage Broker Interview Questions as a guide.
Mortgage Broker Daily Checklist
As part of your daily Dream Team Checklist you should use the following as a guide for making contact with key Dream Team members like your Mortgage Broker:
- Log into your Highrise account.
- Click on the “Tags” tab and select “Mortgage Broker”.
- If you do not have any or you want more, use Business Networking or marketing to find additional ones to add to your Dream Team.
- Process each contact record with that tag:
- You should make contact at least once a month to keep “top of mind awareness” to maximize referrals, keep abreast of rates and new loan programs and look for new opportunities between you.
- Check in on any Buyers or Tenant Buyers that might be ready to cash you out that are working (or could be working) with your Mortgage Broker.
- Find out about any new loan programs that may allow you to either buy more properties yourself or sell your properties more creatively.
- Look for referrals of borrowers that might need a little time to qualify for a loan but may make good Tenant Buyers for you on a Rent To Own property from your Mortgage Broker.
- Update your notes in Highrise for that contact.
- Update or create a new task in Highrise for the next time you'd like to follow up if you do not hear back from them.
- If it has been more than 6 attempts at contact with no replies, consider removing them from your contact list in Highrise.
- Bird Dog Dream Team Checklist
- Creative Financing
- David Goldberg - The Investors Source LLC
- Do I need to be able to get financing on a property as a Wholesaler?
- Do I need to be able to get loans as a Real Estate Investor?
- Does it require traditional bank credit approval?
- Get Buyer Qualified Checklist
- Hard Money Lender
- Mortgage Broker Interview Questions
- Private Money
- Real Estate Agent Dream Team Checklist
- Team Leader Dream Team Checklist
- Teri Evans - Cornerstone Home Lending, Inc
- The James Orr Show 2010-09-16
- Top 10 Referral Categories
- Wholesaler Dream Team Checklist