How to Become a Loan Broker for Real Estate Investors

Anbarasan Appavu
Becoming a mortgage broker is easy. Real estate investing requires passion, organization, and good communication.

As a loan broker, you connect a buyer with a lender. Quick action and lenders are needed.

Many parties must align expectations. Facilitating a rental loan refinance is less stressful than a purchase. Your client, title company, seller, and both real estate agents are involved. Disagreement causes friction.

Loan Broker for Real Estate Investors

Your job is to conduct a smooth transaction that helps your client land the next real estate investment. We'll discuss a white label loan broker program to help you in this role.

Let's talk about becoming a top-notch real estate investor loan broker.

Real estate loan broker for real estate investors requirements

As a loan broker, you'll communicate with many people. You're in the people business, not real estate. Future clients entrust you with their money. Your services give clients confidence, peace of mind, and the tools to make a good deal.

Loan brokers are helpful. Many real estate investors may have asked for loans directly, so you must be a valuable professional to succeed. This means removing a daunting task so they can focus on their strengths. You must make it easier and offer the best financing options.

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Loan brokers are communicators

Successful loan brokers communicate well. You must help clients choose the best communication method. You'll explain complex loan financing details. There will be hiccups that require relaying less-than-ideal news, so keep lines of communication open.

As mentioned, you must coordinate funding with many parties. You're the deal's "lifeline." Manage your client, brokers, sales agents, closing attorneys, and lender.

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Loan brokers are self-starters

Loan brokers usually work independently but have a large network of contacts. Developing key relationships as a loan broker is difficult. Trusted lenders, title companies, real estate agents, and wholesalers are examples. When developing new partnerships, be patient and creative. If you choose the right private lender, they'll provide white label marketing materials to outline your services to potential partners.

As a loan broker, you must understand closing. This means being thorough. You'll lead client negotiations. A good private lender's white label loan broker program includes a closing process overview.

Your role is to give clients the best funding options. You must be proactive with your private lender and discuss upcoming program changes. Great private lenders have competitive programs, streamlined white label broker programs, and new loan products. This is a plus.

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First step to get started

If you haven't, research your state's loan broker requirements. Only state-specific information applies to becoming a loan broker (unless you lend outside your state).

Depending on the investments you make, you may not need a license.

Hard money loans, also called business purpose loans, from a private lender don't always require license. California has different rules than Florida.

Most states provide license, qualifying prerequisites, course requirements, and exam content outlines. Only trust state-issued information on broker licensing.

If you haven't already, create an entity and bank account. Title companies need an invoice and wire instructions to pay you at closing. If needed, a CPA or lawyer can help.

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Find a private lender with a white label loan broker program

Private lender: Private lenders offer benefits in the real estate market. If you've never worked with a private lender, educate yourself first. Private lenders have these benefits.

Private lenders offer mortgages. They offer short-term bridge loans and long-term rental loans for business growth.

Private lenders require less paperwork and offer fast turnaround. You borrow their money. Private lenders offer white label loan broker programs to make submitting and closing deals easier.

You can also read our other article about  Before Getting a Home Loan 

White label loan broker programs?

It's the tools you need to do your job. 

• White label marketing materials 

• Outline of required loan documents 

• Lending process overview

 • Loan submission portal

• Loan-specific portals to upload loan documents 

• Low pricing for real estate brokers (to make money!)

Competitive rates, LTV ratios, FAQs on loan brokers

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Account manager

Using a white label loan broker program, you control the process and client contact. Private lender reviews uploaded documents in real time and provides feedback via portal. The private lender will order an appraisal once you've uploaded enough documents. This starts the clock. Once the appraisal is back, all remaining documents must be uploaded.

New loan broker volume

Getting and keeping new clients are different.

As a loan broker, you may know many real estate investors. What if you don't?

Marketers attract new clients and build a good reputation. Brand yourself. Market constantly.

You can join local real estate investor groups by creating social media accounts.

Social media is a good place to interact with potential, current, and past clients. Remembering is crucial. You want clients to think of you when buying or refinancing.

Your private lender can provide white label marketing material for social media and email.

Having the best program is crucial to gaining business. Low rates, high LTV, and low costs are key. Partner with a private lender with a strong white label loan broker program.

Let's explore marketing and client acquisition.

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Building your client base

Don't give up. Building a clientele will take time. If you do well, they'll return.

Getting your name out is key. To be a respected loan broker, you must join the community. Start by specializing in investor loans.

First, build a professional website. This should be concise. You brand your website.

Consider your website a "lead form"

Directly contact clients here. Calendar allows visitors to book a time to speak with you based on your calendar.

More website traffic will lead to more calls and emails. You can't help every potential customer.

To avoid wasting time, include disqualifying information on your website. If your website says you only serve your home state, others won't contact you. Your loan programs should be online. You want qualified leads.

Leverage social media

Social media is popular. Reasons vary. You should find the social media platforms your customers use most.

Social media helps you become a trusted expert. You shouldn't be "sales" and "aggressive." Share "insider tips," latest trends, and other useful information with your customers. Being approachable and authoritative will help clients feel at ease.

Some marketers say a sale requires seven or more touch points. Your clients will get used to seeing you across all platforms, in emails, newsletters, texts, and phone calls. You want to be remembered. You want clients to consider you for real estate financing.

Answer the critical questions for real estate investors

Fix-and-flip TV shows inspire many to enter real estate. So simple! Obtaining financing and performing the rehab have many nitty-gritty details.

These people want reliable information from a loan broker who understands real estate investment financing. Sharing educational content on social media pays off. You've done this many times with clients.

Do a question-and-answer session on social media to reach potential clients. Facebook, Instagram, and LinkedIn "live" are options. You can record the session on any platform and share it. This is a great way to answer clients' key questions in one call, instead of 10! Your following will grow if you produce quality content.

Question-and-answer sessions should be "recycled." You can create infographics from client questions to post later in the week. Venngage is a cheap tool for creating posts and flyers.

Offer what others don’t, fix-and-flip and long term rental loans

To succeed, offer something others can't. This means FAST financing at low interest rates. Investors looking for new deals rarely have time. You'll have many impatient clients who must beat out other investors. For fast loan pricing, you need a private lender with a white label loan broker platform. If you tell a client a deal can be done quickly, they'll respect you.

Once you have initial financing, close quickly. You need a system to quickly review and approve client documents. Find a private lender with this infrastructure. Funding appraisals are time-consuming. Gather client documents to start the appraisal quickly. Your client can get financing in 15 days if you facilitate.

As a real estate investor, you must consider additional factors. Rehab costs, fix-and-flip lending options, refinancing, and seasoning requirements must be considered.

When financing real estate investors, use a financial institution or a  private lender. Many lenders can cover all renovation costs. This lowers your investor's cash needs.

Ask your client about their exit strategy during discussions. Your client can get a low-cost refinance if they want to rent out the property. Your clients may use BRRRR (buy, rehab, rent, refinance, repeat). Your clients can recoup initial investments and more with this strategy.

These loans are cashout or rate-and-term refinances. Non-owner occupied 30-year fixed rate loans. Some private lenders offer low-document (no income verification) loans that close in 30 days. This is easier and faster than conventional mortgage loans.

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