Loan Info Page

If you own a real estate team or brokerage you may not realize that you can actually make money on the loan side of the deals your agents are closing in addition to what you make on the sales side of the deals. And it’s perfectly legal and fairly easy to set up.

There are only 2 requirements to get started:

1. You need to have a team/brokerage of agents selling around 100 or more houses per year

2. Your name cannot be on the buyer side purchase contracts (your team has to work those)

Meeting these 2 requirements allows this program to be RESPA compliant. And again, you do NOT need, nor do you want to get, a mortgage license. If you already have one, we can discuss how to work with that, which shouldn’t be a problem.

Here is a super quick overview of the program and how it works:

Hi, I'm Shannon.....

If you think this might be a good fit for you, here are some more details.

The company we’re working with helps you set up a branch with a nationwide bank that has a great reputation and excellent rates/fees. Your branch hires a Branch Manager and then Loan Officers into the branch. You have $0 up front cost or fees to set this up. And if you currently work closely with a specific Loan Officer (or more than one), you can invite them to work for your mortgage branch so you can start earning extra income from their closed loans.

Then, every single month, the bank produces a Profit and Loss Statement ( P & L) for you. You and your Branch Manager review and approve this. Then you get to take 100% of the profits from your branch every month.

On the P & L, income is generated from loans that your Loan Officer(s) close. Depending on your area, you can expect your gross profit per loan to be around 2.75% -3% of the loan amount. For example, if your average loan amount is $400,000, then your gross profit (before expenses) would be around $11,000 -$12,000.

From that amount, you will subtract expenses. Those will include paying the Loan Officer, the Branch Manager, the company we work with who will be helping you, some expenses for your team (health insurance, CRM and things like that) and possibly any concessions given to the buyer in order to close or secure the loan (credits, etc).

Our team will help you set up a compensation plan for your Loan Officer(s) and Branch Manager that will vary depending on whether it’s a loan that your team sends to them or if it is a loan they generate on their own. This may be similar to how you have your compensation plan set up with your agents, such as a 50/50 split or a 90/10 split, etc.….It’s the same concept as that.

The really amazing thing about this is that if your Loan Officer(s) close a loan with agents at another brokerage, you still get paid on the loan side of the deal, even though those agents don’t work for you! Because every loan your Loan Officer(s) closes runs under your branch. So the idea will be to help integrate your Loan Officer with your team so they can start closing loans with your existing team, but you can also help them build relationships with other agents in your area to get more deals for your branch too. And you get paid on everything!

So how much can you make?

Obviously, every deal is different with it’s own nuances. Some require the Loan Officer to give more concessions and some require less concessions. Having said that, on an average, if the loan amount is $400,000….

If it’s a self-generated lead from the Loan Officer (at their higher split) you can make between $1,000-$1,700 in profit, give or take. This is per deal.

If it’s a company generated lead for the Loan Officer (from your team or your marketing efforts), you can make between $2,250-$3,000 in profit, give or take. This is per deal.

Certain loan types pay more and some pay less too. And the numbers can go up and down depending on the loan amount.

So if you are currently closing 10 buyer sides per month and you can get half of those closed by your Loan Officer in your branch, you could potentially make an additional $15,000 a month in profit, if those were leads your team generated.

And this is before taxes, of course….And if you send more loans through your branch, you’ll make even more. Plus making income on any deals your Loan Officer(s) generate on their own.

OK, so what’s the catch? There’s got to be some work involved, some costs, something, right?

Sure. There is a little bit of work involved. You’ll need to learn about the program and how it works. This page is a high-level overview and there are a few more things to know beyond what we cover here. Then you sign a contract with our support company and with the bank who hosts your branch. From there you hire a Branch Manager and they help you hire your first Loan Officer. Then you make the introduction to your team to get them to “buy-in” to using your Loan Officer(s). Depending on how long it takes for you to hire your Loan Officer(s), this can take as little as a couple of weeks to set up.

There are no up-front costs. However, the bank pays the Loan Officers as W2 employees (but they only get paid when they close something) and they are entitled to health benefits. Once your branch is established, half of each of your first profits will go towards building reserves for your branch to cover those expenses. It’s a few thousand dollars per Loan Officer you hire. Once those reserves are met, then you get to keep 100% of the profits from there on out.

The company we’re working with is here to help you set up everything and to coach and support you along the way. For most of us, the loan side of things is not something we know a lot about. And that’s ok. You will learn a few things and you don’t have to know everything in order to set this up and start earning some extra income.

This is not meant to create a whole new set of problems or things to do. We know you’re busy running your team and that’s usually a handful all by itself. Our team will help you find the Branch Manager, interview them and set them up. And it’s the same for the Loan Officer too, whether you have someone in mind already or not. We want this to be simple, quick to set up and easy for you to start making extra income as soon as possible.

If you’ve made it this far and it’s sounding pretty good, you may have a few burning questions. Here are a few quick FAQ’s:

1. What if you sell houses (or plan to) in multiple states?

This is NOT a problem. You will likely need to set up a separate branch in each state. But your Branch Manager and Loan Officers can quickly and easily be licensed in multiple states and can likely cover more than one area, if that makes sense to set things up that way. We can talk about your specific needs in more detail, but rest assured, this will work for you and not be too tricky or hard to set up.

2. Do I need to come up with a business name or a logo or anything like that for my branch?

No. This is very simple. Everything is branded as a branch of the bank. So it will have the bank’s branding and your loan team will have all of the resources the bank provides to all of it’s Loan Officers for compliance reviews and things like that too.

3. Do I need extra insurance? What liability do I have?

No, you don’t need any additional insurance. And all of the liability is on the bank. They are responsible for the loan files and all of that. And your Loan Officer(s) are the bank’s employees.

4. If I know a great Loan Officer, what is the process to set them up at my branch?

They go through an interview with our company, and a second interview with the bank. Once approved, the bank does their set up and it takes 2 weeks or less for that.

5. What if I start with a Branch Manager or Loan Officer and I want to replace them?

You can absolutely do that anytime. You have full control over your loan team.

6. Does the bank charge competitive rates and have low fees?

Yes, these are all very competitive and you actually have some control over that too for your branch. You get to set the profit margins and our team will help guide you through the best way to do that and help you get set up for maximum success.

7. Will we have a lot of loan programs to offer for buyers?

Yes, every program you can think of. All of the government loans, construction, land, low down, stated income, et….Yes, you’ll be competitive in your market and able to get loans closed.

8. How do I actually get paid?

You’ll actually become a W2 employee of the bank! This will require you to go through a very simple and basic background check and hiring process to set up your branch. Our team will help you with all of this. You do NOT have to take all of the profit from your branch as W2 income and you have some options based on how you would like to structure things to minimize your tax burden. You also can possibly run some expenses, such as office space rent or marketing, through your branch as well, helping to save you more on taxes too.

9. What about the coaching and marketing resources you mentioned in the video at the top of the page?

The company we're working with is actually setting this up right now. There will be a very seasoned coach available to help us (the team leaders and brokerage owners) with our marketing and sales. This coach will also be available to help our agents and our Loan Officers too. At no extra charge! And in addition to that, the company is working on adding some really cool marketing resources for all of us too. I'm super excited about all of this!

10. Did you mention a Profit Share Opportunity?

Yes, I sure did! The company we're working with has Profit Share built into their model and we get to earn off of the branches we help set up for other teams and brokerage owners. At this moment, I feel like it's a really neat, ground-floor opportunity and I would love to talk to you about how it works. This is not a necessary, required part of setting up your branch. It's just an additional opportunity to make money by letting other teams and brokerage owners know about this new avenue of making money with their own branches.

I hope this was able to answer a lot of your questions and I hope you can see how amazing of an opportunity this is to increase your income without having to sell more houses. You can just make more money from the deals you’re already closing!

I’m sure you still have some questions and I will be happy to help answer them. If you would like to learn more, please give me a call. I live in Oregon and I’m on PST. I can share with you what I know and then from there, if this seems like a good fit for you, I can help connect you with our team and they can answer the finer details of how exactly to get started.

Shannon Amdahl, Owner Eugene Realty Group
(541) 406-3585 Call or Text

As a side note, just in case you are looking for more training for your team...I have a bundle package of super affordable training for your agents and I had great results with this in my own brokerage. Here's the link if you'd like to check that out....www.docenteducation.com/BrokerPackage