Is it wise? Atleast, you will get commision from lenders upon closing your own deals.
what do you think?
I think it’s a good idea. All of my Real Estate stuff is set up so one way or another I control each aspect. The title company is owned and ran by a good friend. My brother got his Realtor license and my wife her Loan officers License.
This system allows me to control all aspects of my Real Estate investments. I may not personally be controlling things, but my family is, and that’s enough control for me.
So, yes, I think it is a good idea to get licensed and have more control over your deals.
GooD Luck! :beer
Yes, you can get paid Yeild Spread Premium on your own deals, but that is IF you are wanting to CHARGE YOURSELF A HIGHER RATE.
The lenders aren’t going to just pay you for nothing - they pay YSP when you give a rate that is above par.
It may be nice to be able to semi-control the financing aspect, but only to give yourself a cheaper deal, not a more expensive one so the lender pays you. Doesn’t make any sense. Believe me, I’m also a mortgage broker as well as investor, but that would be dumb.
There are a lot of questions about getting one sort of license or another. In general you can save money by not using a certain professional or another. I have a job. I don’t want to add other jobs to myself. I can get a real estate license and do the job of the real estate agent, I can get a mortgage broker’s license and do the job of the mortgage broker, I can get in inspector’s license and do the job of the inspector. When all is said and done I have 3 more jobs to do to get a house bought and I can’t be as good at any of these jobs than the person that does these jobs every day all day. What I believe in doing is finding good people to do each job and paying them well when they do.
You need to remember that you are not doing this for the money you are doing it for the lifestyle. You want the lifestyle of a business owner not the lifestyle of a guy with 4 jobs. As a business you work on the business not in the business.
You make decisions for a living. You get good people that understand what you want and you give them the go ahead of instruction on what changes you need made. The best part is all these people work on commission. That means that if they don’t satisfy you they don’t get paid.
Saving on commissions can be significant, but if these guys find you a deal that makes you $40k, why do you have problem with them making $5k on the deal. You walk with $35k and peace of mind that something didn’t get done wrong and will come back to bite you. Also in the month that the deal was going on you actually played golf 3 times instead of chasing paper.
Well stated Bluemoon.
What about the bill that was introduced and passed in the House prohibiting YSP payments to mortgage brokers?
Haven’t seen anything like it…I remember something being introduced to the house, but it never made it through. Pretty sure it got voted down.
If it did get passed, then every lender I know of and work with is doing business illegally! :rolleyes
Also, I’m not sure that you can do your own loan. I don’t think you can be the loan officer and the borrower - but I could be wrong.
I think it also depends on the cost and work involved in obtaining and maintaining these licenses. If its cheap enough and doesn’t take up a lot of time, the education could prove very valuable. That being said, if your advisors are truly good, they’ll educate you by explaining what they’re doing and why. Just my 1 cent (after taxes). :shocked
Mike