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I am a Realtor & A Lender? Can It Be Done?

By Jim Mazziotti

Real Estate Agent with EXIT REALTY BEND

January 08, 2008 05:26 PM

Can A Realtor Also Be A Lender?

I am working closely with a very creative lender. This very bright man has, for years served many of his clients as BOTH their Realtor and their LENDER. He has done so with FULL DISCLOSURE....so nothing has been hidden and he has a very loyal following of investors and clients from every area of real estate.

By being able to perform both the real estate and mortgage side of property purchases he has been able to provide his clients with some excellent programs saving them hundreds, if not thousands of dollars. He can do so because to get "the deal done" for his clients he is able to negotiate his commission on either the real estate or mortgage side...or both!

Are there any other AR Members who do the same? I have found that it is actually quite easy to obtain the minimum requirements in order to be able to offer lender services to my clients.....but I am just not sure how I feel about it. If you do business as both a Realtor and a Lender do you find you are really able to represent your clients better?

As an EXIT agent I am certainly aware of the work EXIT Founder, Steve Morris, has done to put together a 4th Dimension to real estate thorough his ALTA FINANCIAL model....and this is as close to that model that I can think of. I would like to wait for EXIT to put this 4th Dimension into the EXIT FORMULA, but I think it may be a while before EXIT is able to get DOJ approval in all 50 states....and heck, I am just talking about one state.

Please....your thoughts are most welcome. I look forward to hearing from you!

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Felix Krynicky

Keller Williams Realty - Greensburg, PA

Hello Jim

I am going on my fourth year of doing both real estate sales and mortgage underwriting. I absolutely sell more real estate than I do mortgages.

You really have to be careful when having all sides of the transaction. Make sure your paperwork is perfect. You and your services will be under very close scrutiny, especially when you have a transaction like a seller and buyer controlled transaction along with the loan all rolled into one.

I don't bite off more than I can chew. I do basic prime and sub-prime purchases and refinances. If the transaction requires knowledge of a special product that I do not posses I send it to someone else.

I do not process my own loans. If you try to do that and actively sell you will be doing more paperwork than selling. Work with a broker that understands the value of your time and has an excellent processor. Your processor is really the person that provides the great loan follow up service you were talking about.

In your business plan decide what amount of time you will spend growing each side of the business. This will be your biggest obstacle. It is difficult to dedicate the time and resources to both. I focus mainly on growing my real estate business and writing as many of the loans that I can that come from that.

Good Luck

Jan 08, 2008 06:18 PM

Erica Crowell

eRealty Inc. - Wake Forest, NC

I do the same. Disclosure and choice is really important, UP FRONT. The mortgage company that I work for has a different system than most though. I work as an originator in taking the 1003 and following a few other steps after my buyer has given the thumbs up to move forward. I have a loan coordinator as my partner and they handle all the pricing, docs, GFE's and details. It works great since I don't have to learn a new business.

Feb 25, 2008 02:21 AM

Darlene Wurth

Keller Williams Select Professionals - Rome, GA

Realtor/REOS

Jim- I also do both. we have Home America Mortgage in our office with us. I agree with Erica above about disclosure and choice.

I do disclose and I give them 2-3 more mortgage compaines to choose from,

I do more on the Real Estate side, knowing about mortgages does help and helps me to provide more value to my client. If they are doing a FHA then I pass that on to someone else in our office. Great post thanks

Feb 25, 2008 03:04 PM

Melissa Moore Albert

Keller Williams Preferred Realty - Morrisville, NC

Morrisville, NC Homes

Hi,

I want to do the same. I'm already established in an Exit Real Estate office as an Agent. Any recommendations for getting a foot in the door on the mortgage side?

Feb 26, 2008 05:43 PM

I am a Realtor & A Lender? Can It Be Done?

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