Why Mortgage Brokers??????????????????????????? - Posted by Nate

Posted by Cesar on December 09, 1998 at 15:40:52:

I agree with Paul wholeheartedly. Even though there are deals out there that you can do without having to refinance, you would be throwing away even more that would be possible if you had the right team of people to help you. They can make your like a whole lot easier and actually end up giving you a lot more profits if YOU do it right. Remember, even the best brokers, etc. are only going to do what you tell them to do, so it’s up to you to get the knowledge and figure out a way to structure the deal. Then get their help in carrying out your plan.

They will not do the deal for you, but they certainly can help a lot.

Why Mortgage Brokers??? - Posted by Nate

Posted by Nate on December 09, 1998 at 01:36:06:

I hear people talk about the need for a good Mortgage Broker on “your team”. My question is–wouldn’t that just be another middle man fee that could be avoided? Is there other reasons for them to be interested in helping you besides for the fee? Would they actually help you without being paid?

How do you guys use Mortgage Brokers to your advantage? All that I’ve talked to are pretty narrow minded about creative investing in the first place…

Re: Why Mortgage Brokers?? - Posted by Erin Stevens

Posted by Erin Stevens on December 09, 1998 at 19:22:51:

As a mortgage broker, I tire of hearing those phrases mentioned throughout this thread… (ie. cutting out the middle man).

I just wanted to say it is so nice to read some of the comments you all have posted. It’s nice to know that some people actually understand what we do.

Our income IS commission-based… therefore, we make nothing if we do not meet your needs!!!

Also, we are not all narrow-minded.

Thanks for the votes of confidence!

Best wishes,


Re: Why Mortgage Brokers? - Posted by Paul Macdonald

Posted by Paul Macdonald on December 09, 1998 at 14:03:25:

A couple questions for you:

  1. If its not seller fi’d where else are you going to get your money? At the local bank? They have one 30 yr fixed, one 15 yr fixed and one equity line. After that its; sorry, you can’t get the loan you want. Most brokers are approved by, and have 30 to 100’s of lenders they can send you application to. Want a 10% investor purchase loan? Gee, local bank cannot help. Local broker probably has three sources. Want a construction to permanent 30 yr fixed? Local bank wants 25% down. Local broker might be able to get you in with 0% down depending on the appraisal. They get paid to get you the money you want and need.

  2. Middle man fees? - Whens the last time you saw a direct lender (bank) not charge fees for normal loans? And how are you going to get rid of the settlement people fees, the attorney fees, the realtor fees, the gosh darn state and county fees… its just the price of doing business. So earn more than they charge.

3)"Would they actually help you with

Re: Why Supermarkets or Department Stores??? - Posted by BankRobber

Posted by BankRobber on December 09, 1998 at 11:34:37:

Because it would not be an efficient means of distribution if the end user directly contacted a Farmer or a Clothing manufacturer everytime they needed to purchase food or clothes. Sometimes a Broker is an unnecessary “middlewoman” expense, however most of the time the service they provide is worthwhile and cost effective.

Re: Why Mortgage Brokers??? - Posted by SCook85

Posted by SCook85 on December 09, 1998 at 08:04:37:

Just like in any business there are incompetent individuals and there are competent individuals. It is up to you to find the competent ones that will benefit you with your real estate investing.
So often I see people that make posts on this group about cutting the middle man out (ie: realtors, brokers, bird dogs, etc…) As Carol stated in her post this is how these people make a living. Who cares how much money they make as long as you are making money yourself. If you wanted to make $10k on a deal and you did so and your realtor happened to make $20k on the same deal, are you going to be unhappy because you made the $10k that you wanted to make? Same goes for your mortgage broker. I can assure you that the realtors and mortgage brokers out there make a lot less money on these deals then we do. If we constantly run around with these attitudes and want to do all the work ourselves so that no one else will get paid, we might get 2 deals a year done (if we are lucky). We all need to remember what we see in almost every book relating to success and that is win-win. That does not only apply to the buyer and the seller in our case but it also applies to everyone inolved in getting the transaction done. These transactions become duplication of effort and can become very streamlined if you keep all the same players in place and make it easy for them. If your players are not making money I can guarantee you that they are not going to continue to play for your team.


Re: Why Mortgage Brokers??? - Posted by Carol

Posted by Carol on December 09, 1998 at 06:52:53:

A few simple basics…

1.“Brokers” by definition are paid a % commission for PERFORMANCE, not advice. That is how they make a living.

  1. As RE Brokers have (hopefully) more than one house to show you (example), so Mortgage Brokers have more than one loan source … they know (or should) myriad lenders of many kinds, appropriate to everykind of deal. They deal with dozens, hundreds of lenders around the country - institutional and private (again, if they are good).

THAT’s why you may choose to use them.


Re: Why Mortgage Brokers? Continued… - Posted by Paul Macdonald

Posted by Paul Macdonald on December 09, 1998 at 14:06:48:

3)“Would they actually help you without being paid?” - If your employer at your day job said; “gee, Nate I realize you’d like to get paid but I’d rather you just work for nothing and I’ll be so grateful”… what would be your response?

  1. “All that I’ve talked to are pretty narrow minded” - who cares? Find the one that will work with you. It takes all kinds to meet the needs/desires/attitudes of all kinds of clients.

Find a good one. You’ll find he/she is worth their weight in profits.

Paul Macdonald