It’s true you have to make sure you don’t violate local or federal laws. Check with your local real estate attorney to see what the regulations are where you do business.
You might also consider partnering with someone who’s already in the mortgage business. Many real estate offices have a partnership or affiliate agreement with a mortgage company that’s “their” lender. Your attorney can tell you about the disclosures you’ll need to give your clients to be able to make a commission on both the real estate and mortgage side. (If it’s even allowed in your state.)
Some offices even have an insurance salesperson as well to offer a “one-stop-shopping” atmosphere to their clients.
But I would suggest partnering with people who already have experience in these other industries. It’s not that you can’t do it. But you might find yourself spread a little too thin and becoming a jack-of-all-trades/master of none. The law in all these industries change often, and it would be difficult to be the sole responsible party who has to keep up with all those changes.
I’d make my first stop the attorney.
After that, find some partners/affiliates who will contract with you.
Also….these ‘partners/affiliates’ can sublet some of your office space which can be an additional source of income for your office.
There may be some that completely disagree with this philosophy.
Just my 2 cents.
Good luck!
I Am A Real Estate Broker Who Wants To Open A Mortgage Division. Any Suggestions?
I am a fully llicensed commercial real estate broker, who wishes to open up a mortgage brokerage division or new company… How do I begin?
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3 comments - add yours
TN_RealE
June 3, 2009
steve s
June 3, 2009
First of all it is bad enough that real estate agents pretend to be mortgage brokers and think they know everything about the mortgage industry. If you are serious about opening up a broker shop then go to Thomas-law.com and look up your states laws on what you need to qualify so that you don’t violate RESPA and the Fair Housing Laws. Also go to mortgageoriginator.com to see what the industry is all about. Just because your in real estate doesn’t mean you know everything about the finance side.
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