Finding the right investment property is only part of the successful real estate investing equation. Finding the right financing to make the deal work is what makes it all come together. The right mortgage broker to bring it all together takes time and persistence.
What is a mortgage broker? The role of the mortgage broker is to bring together a borrower and a lender through a real estate transaction. Mortgage brokers have access to lot of mortgage services and products at wholesale prices and they in turn market these services and products to their customers. Mortgage brokers familiar working with creative real estate investors are usually adept at providing creative financing in order to maximize the investor’s return on investment. Who you ultimately choose to handling the brokering of your real estate transactions is one of the most important aspects for making money in real estate.
For the real estate investor the mortgage broker plays an important role in the real estate transaction. Mortgage brokers are specialists in that they have in-depth knowledge about the mortgage market. Mortgage brokers with your best interest in mind should work to locate the best financial solution from the available options. They have access to more number of lenders and sometimes might even help the borrower to get mortgage from a mainstream bank itself.
One area where mortgage brokers really shine is processing the paperwork necessary to complete a real estate transaction. No real estate investor could be successful without their broker handling this onerous chore. As a real estate investor you want to know all your options and a good mortgage broker does this searching for you. They also can negotiate well with the lender and get the best possible interest rate to the borrower.
Finding the right mortgage broker is no different than finding the right realtor. Both are critical to your success. It’s a matter of researching the area where you intend to conduct your real estate transaction. One of the best ways to find a good mortgage broker is to network at your local Real Estate Investor Association or club (REIA). Here you’ll find mortgage brokers who understand your business. Make sure that they can help you get your buyers qualified for when you have a house that you need to sell.
Since real estate investing is outside the mainstream of typical real estate the wise investor should have some specific questions ready to screen mortgage brokers for the job. For example:
- How long have they been a mortgage broker?
- How long have they been brokering real estate transactions involving investors?
- How many deals involving investors have they brokered?
- Can they provide references to confirm these transactions?
- How available are they?
- Will they work evenings and weekends if necessary to get the deal done?
- What are their fees?
- Are they negotiable?
- Can they help you fund deals for houses that you are going to sell?
- What about for houses that you are carrying the financing on, can he help those tenant-buyers get refinanced into conventional loans to cash you out?
These are by no means all the questions you should ask. Ask other investors how they interview a mortgage broker. As you gain experience in real estate investing your list of questions should grow.
Want to learn how you can get started flipping houses and making money in real estate investing today Today?
And receive a FREE 7 steps to real estate riches Video course ($97 value)