Help understanding Brokers

Ive been listening to the Carlton program.

I am kind of confused on all the different types of brokers, and how they differ from real estate agents. He makes them seem like Bird Dogs, can anyone clear this up for me?

Generally speaking, a “broker” refers to a higher level of Real Estate Agent…the average “sales guy” Realtor works for a broker. In most states, you have to have been a Realtor for a certain length of time and then take a separate exam to become a broker.

The textbook definition (from this website’s “Investing Glossary”) is:

Broker - An individual who acts as an intermediary between two or more parties for the purpose of negotiating a transaction agreeable to all of the parties. In lending, the broker arranges and negotiates loan amounts, interest rates and loan terms between borrowers and lenders. Depending on the type of loan, the state wherein the transaction is occurring and contractual arrangements, the broker may represent the borrower, the lender or not have a fiduciary responsibility to either. (See definition of “fiduciary responsibility” below.).


So when scouting for properties, who do you recommend dealing with? Or should i just scan FSBO’s strictly?

<<…should i just scan FSBO’s strictly?>>

Not at all…I know what sort of house I’m looking for - (at least 2 bedroom, at least 1 bath, Central Air and Heat, in the parish that I live in, under $75K list, etc.), then I look in for property that meets my screening criteria. When I find one (or more) that looks promising, then I contact my Realtor. My Realtor works for a broker but I don’t need a broker, I need a Realtor that understands my wants/needs. My Realtor was an investor (until only recently), is a Property Manager, and understands what my goals and objectives are.

If I find a promising FSBO, I contact them myself. I also read the local paper and the local “American Classifieds” (aka “Thrifty Nickel”) paper.


Nice, thats very valuable information. I’m trying to break down the process step by step so I run off a plan thats the same everytime I search.

Trying to streamline the scanning, evaluating, cash flow analysis, scanning motivated sellers…

I also need to figure out who and how the bset way to get 100% financing.

<<I also need to figure out who and how the bset way to get 100% financing.>>

It’s easy for me! I pay cash and close in a week. Then, I refurb and do a cash-out refi based on 80% of the new/higher appraisal rate. I most normally get all or nearly all my cash back out. I think the most that I have in a property is about $5K of my money.


Yea i jsut dont know who to go to for a buy/hold strategy, who will give me a 100% loan…

Where have you physically tried…I mean really tried? Who have you asked other than the folks here? Have you met with any local lenders face-to-face?

I deal with a local lender here in town. When I go to him, I have already refurbed and already have an executed rental contract in hand.


well see thats the thing, I know I go to lenders, not sure how to locate them, who are the best ones, etc for my area. I kinda am just spinnin my wheels right now…

Funny, that’s what I said!

Go to your target area…find the local bank that does mortgages in the area…

I know that you are considering out-of-town investments. It costs nothing to go talk to the mortgage department at the bank. Have your ‘ducks in a row’ and know what you’re talking about.



How many properties do you own? How long did it take to get there? and if you don’t mind me asking how much monthly positive cash flow do you take in?

Don’t reinvent the wheel, if you join your local real estate investor’s club, these guys will be there at every monthly meeting making speeches about how they can do deals just like what you are trying to do.

Yea I have been looking at my lcoal club, costs 200 dollars though. Gonna check into i guess tho.

I am a member of 2 here in Houston Lifestyles is $300/year and the RICH club is $150/year. They have different focuses, Lifestyles focuses on rentals and landlording issues. The RICH club focuses on flipping. I have saved enough on doing my own comps and tenant background checks etc (lifestyles) and found contractors and mortgage brokers that understand the business (RICH) that the fees I pay are only a cost of doing business. It comes off at tax time and keeps me current with what is happening in the business.