Yesterday, I saw a posting from a lender blog that stated For Sale By Owner (FSBO) is a good source for originating new loans.
Now, in their blog the author was stating that FSBO's are cost sensitive; and, they are a good market for loan originators to solicit business from because they can refer you potential buyers for you to qualify.
Okay. This is NOT an original idea. Twenty plus years ago when I was still working real estate by doing homes and loans, I did this.
As a loan originator, I'd approach a FSBO with the slant that I will qualify ALL of their potential Buyers that needed financing for free! I worked this angle for a few years -- until I realized that all of the potential Buyers they were referring were NOT qualified to borrow anything -- let alone money to buy a house.
Now, years before, when I first started out in the real estate business working for Mike Sitren, he once told me that, "if a seller, buyer or agent is worried about their cost in fees, they're seeking a kick-back.
Huh?
I was surprised to hear this given I had been to several real estate brokerages and heard this a lot.
One brokerage sales manager even sat me down in his office and point blank told me that unless I paid him 1/2 point per loan, I'd never get any loans from his office. (Illegal? Yes!) But, he didn't care.
So, when I recently heard a seller tell me that my fee must be obtained from the Buyer, I keep thinking this thought in mind.
Since the world knows the seller pays the marketing fees for selling their property when they are selling, it is just surprising to learn that a recently listed for sale Las Vegas Resort casino owner told me that I would have to get my fee from the buyer.
You know what crossed my mind upon hearing that line.
To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!
Now, in their blog the author was stating that FSBO's are cost sensitive; and, they are a good market for loan originators to solicit business from because they can refer you potential buyers for you to qualify.
Okay. This is NOT an original idea. Twenty plus years ago when I was still working real estate by doing homes and loans, I did this.
As a loan originator, I'd approach a FSBO with the slant that I will qualify ALL of their potential Buyers that needed financing for free! I worked this angle for a few years -- until I realized that all of the potential Buyers they were referring were NOT qualified to borrow anything -- let alone money to buy a house.
Now, years before, when I first started out in the real estate business working for Mike Sitren, he once told me that, "if a seller, buyer or agent is worried about their cost in fees, they're seeking a kick-back.
Huh?
I was surprised to hear this given I had been to several real estate brokerages and heard this a lot.
One brokerage sales manager even sat me down in his office and point blank told me that unless I paid him 1/2 point per loan, I'd never get any loans from his office. (Illegal? Yes!) But, he didn't care.
So, when I recently heard a seller tell me that my fee must be obtained from the Buyer, I keep thinking this thought in mind.
Since the world knows the seller pays the marketing fees for selling their property when they are selling, it is just surprising to learn that a recently listed for sale Las Vegas Resort casino owner told me that I would have to get my fee from the buyer.
You know what crossed my mind upon hearing that line.
To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.