Information on Business:
Basics:
You will be working with new clients most of the time and with that comes excellent listening and communication skills. You will need to understand your clients' financial needs and situations and be able to help them see how you can help them with those. You need to be able to adapt to each client so much patience and understanding is required. If you are successful in those skills mentioned you will have a constant flow of new clients since word of mouth referrals will be your main source of advertising.
To Get Started:
You will also need to communicate with those providing the finances, lenders. Lenders also require you to communicate effectively and they need to be convinced that the financing they will provide is a sound investment. Your reputation with both lenders and borrowers will make or break this business. You can also advertise online, newspapers, and real estate publications, attorneys, and real estate professionals and you should continually advertise since it is essential. Starting this business is somewhat easy after obtaining your license, you will need basic office equipment and either use or design mortgage programs that will help your clients obtain the financing they need in the most effective and profitable way. Your income will be mostly commissioned based with rates usually at 4% of the loan amount you can also charge extra fee for complex deals.
Tips:
You can run this business on your own unless you want to grow and need associates and assistants. You will be doing a lot of traveling to your client's homes and businesses. Keep an eye on travel expenses which could get out of hand. This business can be run from your home and it is a limited opportunity for people with disabilities. For Internet links related to this business do a search for the Mortgage Bankers Association, the National Association of Mortgage Processors, the National Association of Mortgage Brokers, the Federal Deposit Insurance Corporation, Fannie Mae, the American Association of Residential Mortgage Regulators, Mortgage Broker Training and the Mortgage Professor's Website.
Definition:
A person that helps individuals and businesses obtain financing to purchase real estate property.
Revenue Range:
$20,000 to $60,000 or more depending on business growth.
Education and Training Required:
License (required for each state you will be working with), working experience in a real estate field, financial course work in college will be helpful, knowledge of real estate finance.
Equipment Required:
Computer, office supplies and materials, mailing supplies.
