Newbie--Working w/Mortgage Banker for Leads

I’m an inspiring part-time investor, who’s thinking about working with a Mortgage Banker to get a pool of leads (who may otherwise have trouble qualifying for conventional loans) for Lease Options Deals. I have two questions regarding this:

(a) Is this a good idea, or would you recommend running an ad in the paper? One of the perks for me going this route is that since I currently have a J.O.B., I can’t afford to have my phone ringing throughout the day; and

(b) if this is the way to go, what do you recommend for compensation? i.e. - a certain % of profit if I get after getting Buyer X into a house, or a flat rate for each prospect?

Many, many thanks! :help

Running an ad comes with a fixed cost that you have to pay regardless if the ad generates leads, you convert these leads into clients, etc., whereas the mortgage banker is offering you leads on a performance basis (close; share profits/don’t close; don’t pay anything).

The greatest marketing results are created when you are generating leads from more then one source/system; it sounds like you have been offered a “pay only if your close” lead source, why not give it a try?


Scott Miller

Good suggestion, EZ. I wouldn’t start placing ads and having fixed costs as a beginning investor. Best bet is to network and reward people on referrals. Bird Dogs and referrals are often rewarded with $250-500 for leads.

Thank you both for your insight! I really appreciate it! :biggrin

has anyone gone down to the local county Courthouse and asked someone there who is digging through the records to be a “cyber bird dog” for you? The computer system in my county is a kludge from the 80’s and its such a pain in the _____ driving there.

Would you offer them something like $500-1000 reward per closed lead if they feed u new NODs via email? Does that sound right?