The Visio Marketing Department sat down with top Visio Broker Tim Hero and his Visio Account Executive James Webb. Amazingly, Tim became a broker within the past two years. He had no prior industry knowledge yet was able to broker loans full time after three months, and he now runs an extremely successful broker shop. You may be wondering what his secret to success is, and you’re in luck. Tim shared some of his top tips with us.
Don’t Limit Yourself to One State
Tim knows many brokers who only broker deals in their home states. Yet in the age of the Internet, it is easy to market to anyone and fund deals in 35-40+ states.
Know How to Spot a Deal and Do Your Homework Early On
According to Tim, a lot of investors don’t have a clear understanding of the non-QM market and are stuck in the mindset of bank rates in the 3’s and 4’s. If the client cannot grasp private lender terms, it is usually not worth taking the time to build a relationship.
Talking to investors is a “time management game from a broker standpoint,” said Tim. “I try to vet each and every investor early on.”
Tim also asks how many people are on the title of a deal and for each of their credit scores right off the bat. “It’s better to have a deal fall through before it starts,” he explains.
From the lender standpoint, Tim’s efforts go a long way in developing the relationship. “Tim’s front-end work is gold,” said James. “When I get a phone call or an email from him, I know it is going to be a great deal.”
Don’t Be Greedy
The broker business relies on strong relationships and brokers adding value.
Tim urges brokers not to charge too many points and has seen many deals fall through because of it. “Brokers can make the whole lending process easier, or they can make it unbelievably expensive for investors.”
“The goal is not to get rich over one deal,” said Tim. “you can do several deals in a month.”
James strongly agrees. While new brokers CAN earn up to five points through Visio’s Broker Program, it is unlikely that an investor will agree to that.
“New brokers need to be conservative with their charges, since the industry is increasingly competitive.”
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