Today’s REI Classroom Lesson
In the classroom today, Jon Iannotti explains why it makes sense to have connections with loan brokers.
REI Classroom Summary
Besides pre-qualifying people for loans, they can provide opportunities to get your buyers financed. It’s a perfect business relationship where you can both help each other out.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the Flipnerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Jon: Hey everybody, Jon Iannotti here for the FlipNerd Classroom. Our website is buyreactnow.com. That’s buyreactnow.com. Today, we’re going to talk about using a loan broker in your business.
Mike: This show is sponsored by passiverental.com.
Jon: You should have at least one, if not a half dozen or more loan brokers in your business. Why do I say that? It’s because loan brokers can get people financed where conventional banks can’t. A loan broker has programs from all around the country.
If you go to, say, Bank of America or Fifth Third or SunTrust, those kinds of banks around the country, if you don’t fit within their little box, if you don’t fit within their requirements, your buyer’s not going to get financing. The goal here is to get them financed, because if they get financed then you get a nice big check. We want to use loan brokers who have hundreds of programs all around the country. Some of them are more lenient than others and you have a better chance of getting your buyer financed.
Another reason we want to use loan brokers is because they can pre-qualify our people, whether they can get financed today or possibly within 6 months, 8 months, 12 months, whatever. They’ll let us know by looking at everything on their credit.
Another thing that a loan broker can do for you is all day long what they’re doing is pre-qualifying people for loans, people that aren’t your particular buyers. A lot of those people can’t get financed today. What do they do with those leads? They could give them to you. You can put them into your properties as tenant buyers. Work with them.
Typically the loan broker will put them in their own credit repair program and work with them to get their credit repaired. You can work with them to build up more down payment and eventually get them to where they’re financeable. Who’s going to do the loan when they are? The loan broker that gave you the lead. So, it’s good for him, it’s good for you and it’s good for your buyer. That’s a great source of qualified tenant buyers for your properties.
Don’t be afraid to use loan brokers in your business. Again, we usually have five, six loan brokers at any given time because we want that constant flow of qualified people coming into our properties and also of them being able to finance those people quicker because they have more programs available than just a conventional bank. Don’t be afraid to use loan brokers, guys. They’re a great source and they’ll love you for working with them. Just make sure, though, that whenever that lead that they gave you, it’s time for them to get their mortgage that they do qualify, that you give that back to the loan broker that gave you the lead in the beginning. Scratch each other’s back.
All right, guys, Jon Iannotti here for FlipNerd Classroom. That website for us is buyreactnow.com. We’ll see you on the next class. Take care. Bye bye.
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Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of Flipnerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.
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