We all remember the days that a real estate broker was an insurance agent, financial advisor, Mortgage broker and a CPA all at the same time. Today, things are a little bit different. Consumer protection laws, conflict of interests, and so many other regulation in place that makes it hard to operate as an stop shop.
Considering all these laws and limitations, there are still brokers and real estate companies that have in-house lenders, now these lenders may not be affiliated with the real estate agencies but they pay a hefty amount of rent every month to buy the businesses from that office and eliminate the competition. It is perfectly understandable to be ambitious and want to succeed in business but not at the cost of your client’s benefits and your agents in the office.
There are a lot of banks and mortgage companies out there and maybe most of them offer the same programs and options but there are some niche products that aren’t that popular or profitable that could benefit your clients and make an extra deal for the real estate agent.
I called one of our local real estate brokers for a time frame to do a presentation for their agents, the broker emailed me back ” We already have a lender that provides that service”. I wrote back ” Mr. Broker, Have you heard about the steering laws and RESPA violations, have you seen the penalties for a mortgage company paying 10 times more than what the market value of rental in order to get an office in your agency?”
Tear down the walls, let in the talent and knowledge so your agents and their clients can benefit from it.