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Speaking of referral fees - is it correct that you can tie the fee to app taken but not to commission received? TIA, Jim
Targeting Realtors
- Thread starter agentinsouth
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There are some gray areas on this subject with regards to RESPA. To me, it looks like Mortgage Brokers are not supposed to accept anything from a title company or insurance agent. However, there are those that do
- 10,318
You two are talking about different regs.
For insurance regs it is totally state specific. Some states even allow a referral fee that is a % of the sale. But most require it to be a flat fee. Sometimes it can be dependent on apps. Most states it can not be based on making the sale. There are ways around it though depending on the situation.
Many mortgage brokers already have an agreement with a non-med company to provide term for their clients. Often you can get around referral fees by having the broker or someone in their office get licensed. There are other ways too but that gets state specific.
I dont know what the laws are for the mortgage brokers. Not my field of expertise.
For insurance regs it is totally state specific. Some states even allow a referral fee that is a % of the sale. But most require it to be a flat fee. Sometimes it can be dependent on apps. Most states it can not be based on making the sale. There are ways around it though depending on the situation.
Many mortgage brokers already have an agreement with a non-med company to provide term for their clients. Often you can get around referral fees by having the broker or someone in their office get licensed. There are other ways too but that gets state specific.
I dont know what the laws are for the mortgage brokers. Not my field of expertise.
- 15,041
You can pick fruit from an orchard from years into the future. You can only cut it down for firewood once.
Take their referrals and thank them. Then focus on the person they referred you to. Odds are, that person is vastly more successful than the realtor. Also, right now you have a good relationship with the realtor, why risk it with a sales pitch that may or may not go well?
You do not have to make a COI a client. It is nice when you do, but if your relationship is strictly one of referrals, you risk it when you go after the agent/client relationship.
Take their referrals and thank them. Then focus on the person they referred you to. Odds are, that person is vastly more successful than the realtor. Also, right now you have a good relationship with the realtor, why risk it with a sales pitch that may or may not go well?
You do not have to make a COI a client. It is nice when you do, but if your relationship is strictly one of referrals, you risk it when you go after the agent/client relationship.
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Mmmm idk. I have never sold short term DI. What are you meeting with them about? Vol had some good advice.
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I read some where that 1 in 5 realtors make $100,000+. Maybe that was referring to brokers?
In my experience working in P&C and as a life UW, realtors will work an P&C agent all the time for home/auto/life quotes for their customers but for themselves they see themselves as needing to be serviced by the "insurance and financials" crowd. I swear I've see two thirds of the realtors, lawyers, doctors, architects, and teachers in this country.
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The Real Estate office I came from had about 250 agents and was the top office in my town with the highest number of top producers. I also know lots of agents at other firms. Out of that pool I'd say I know 5 that predictably make over 100k per year, maybe another 3 or 4 that hit that figure every couple of years. They put on a good show, but most of them are pretty strapped. Some of them fall really well into a particular market niche (a few years ago there were lots of agents killing it in the short sale or foreclosure market) but then the market shifts and unless they were smart with their money a lot of them wound up declaring bankruptcy because they were unable to shift their business plan fast enough. Most of the ones that are "killing it" seem to have a lot of family money and rental properties so they can last through the market shake-ups and come out as one of the few big guys still in town. From my experience the 80/20 rule is way off in the Real Estate industry and it's more like 99/1.
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A good fact-finder is a better idea. Why not use the time to find out if anything itches, as opposed to "presenting" something that they might have little interest in?
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The Real Estate office I came from had about 250 agents and was the top office in my town with the highest number of top producers. I also know lots of agents at other firms. Out of that pool I'd say I know 5 that predictably make over 100k per year, maybe another 3 or 4 that hit that figure every couple of years. They put on a good show, but most of them are pretty strapped. Some of them fall really well into a particular market niche (a few years ago there were lots of agents killing it in the short sale or foreclosure market) but then the market shifts and unless they were smart with their money a lot of them wound up declaring bankruptcy because they were unable to shift their business plan fast enough. Most of the ones that are "killing it" seem to have a lot of family money and rental properties so they can last through the market shake-ups and come out as one of the few big guys still in town. From my experience the 80/20 rule is way off in the Real Estate industry and it's more like 99/1.[/QUOTE]
This wouldn't surprise me. From what I have always been told and what I have seen bears this out.
There are two types of realtors. One, they are just killing time. They are retired or their spouse pays the bills, and this is just a hobby that brings in a little money if they are lucky. Two, they can't or won't find a "job" so they are trying real estate and will be onto something else in a year or two when they fail out.
And then there is a small group that actually make it a profession and make a good living at it.
- 711
So..... basically like insurance agents.
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