Does my broker dictate completely the direction I take in Real Estate?

Ken, I personally do not believe that agents should also do mortgages, appraisals, etc.  For one, it is another liability...for two, how does one expect to stay on top of changes in the industry as it changes so quickly?

My advice would be to spend more time advertising your self and look at your marketing.  FSBO's, expired's, etc.  Don't burn the candle at both ends.  Good luck.

Ken,

First . . . I whole heartedly agree with your broker!  It's truly difficult to become and expert in all of these areas and do justice to any one of them from a career standpoint.  Your broker must run his business in part from the point of mitigating risk to you, himself, and the company.  The more areas that you work in . . . especially in the same transaction . . . the greater risk and liability that you personally assume in that transaction.  Moreover, some activities . . . if and of themselves . . . creates an inherent conflict of interest for you and your broker.

So, as a broker, I separate what practices that will be allowed in the brokerage from what state laws may permit.  For example, Nevada allows a licensee to write an offer as the real estate agent for the buyer and to secure the mortage as a loan officer.  However, we would never permit this activity in our brokerage due to the excessive liability and risk in doing so. 

So, pick one . . . stay focused . . . and make a great living out of it.

Ken, I agree with your broker. Do one or the other. If you can't succeed in real estate, it is going to be even more difficult to be a loan officer.  Take your brokers' advise.  He IS responsible for your actions.

I think in the end you need to do what is best for you.  I do see the conflict of doing mortgages and real estate as a loyalty thing and possibly an ethics issue.  I mean lets say you have the listing and you do an open house, buyer walks in and needs a loan, you in turn become their loan officer, but who are you going to represent in the sale of the house.   Makes it very difficult to separate like Forrest said.

I think it is a conflict personally, but you are an independent contractor and might feel you should have the say.  Your broker does have a say because they are the managing broker and set the policies.  In this case, the broker is very justified to state that you should do one or the other, but you should also be comfortable with the policies of your broker...or find a new one?

It doesn't really matter if a Broker or an owner is right or wrong.  It's their company and they have the right to put rules in place that are within legal limits.  There are plenty of Brokers and Owners who wouldn't mind you doing it so make your 2008 plans accordingly.

It would never fly in my company due to increased risk and liabilty.

 

 

Hi Ken-to me pro's and con's...some people can do it well and some just do it.  I attempted and gave up the mortgages.  Do I think it's a liability....only you can answer that.  For me it was a liability because my real estate customers suffered.  After 1 year...I quit doing mortgages...I said I would try it a year and if it affected my real estate business..I would stop.  To me doing mortgages are so detailed..down to the penny...so stressful...and so time consuming...I didn't have time to service my real estate customers.  I had my own loan processor and a real estate assistant...it was very difficult for me.

As far as your broker....why are you with them? To me I chose broker's that I could learn from...with knowledge...experience and fairness..I looked for those traits...so if it were a broker that gave me some advice about doing mortgages...I would consider what they are saying and consider why?

The truth is Ken, only you know the answer...just be prepared for a whole new level of challenges and activity.  Let us know what you decide! 

 

 

Ken, regardless-you are still a licensed real estate agent and your clients on either side of the fence would know this.  Think of what may/could happen if you were to somehow disagree with the other agent or in conversation say something that could be considered advice or opinion.  Could that be considered Interfering with Agency?  I don't know, I'm not an attorney, but I do not perosonally think it is worth the risk..

To me, it would be like acting as a prosecuting attorney yet also representing a someone in another case that is a witness for the defense.  They may be two different cases, but the people are the same and somewhere along the line it could be a conflict of interest.  I hope that made sense.  :)

 

Hi Ken - The first thing that I always think of when I see this is potential conflict of interest. Even the appearance of conflict is enough sometimes to create liability. With loans or real estate, it's all about lead generation. Focus on that, and you'll have plenty of business in any kind of market.

Ken, when I first started real estate I picked one neighborhood and about 250 homes in it.  I made a monthly newsletter, went to Kinko's and copied them for less than $20. 

I then walked the newsletters every month myself.  I did flags on flag holidays at the same homes, it got to the point that people knew me by face from farming the neighborhood.  It turned out great!  At one time I had 5 listings on the same street at the same time.

Think out of the box.  It's all about image and recognition.  Whether it is FSBO's, Expired's, newsletters or all of them.  Find what you do well at and go from there.  I also used to go to the same Starbucks every day.  I get atleast one sale a year from that.  Hand out 5 cards a day...you will do fine.  :)