In previous week’s we’ve covered several of the real estate professionals you need on your team. You can find those articles at the following links:
- Build your real estate team Part 1
- Build your real estate team Part 2
- Build your real estate team Part 3
Here we will continue with our exploration of real estate team members by talking about the importance of a Banker, Mortgage Banker and Property Manager.
- Real Estate Agent/Broker
- Insurance Agent
- Title Agent Rep.
- Certified Home Inspector
- Mortgage Banker
- Property Manager
- Real Estate Attorney
- Closing Person/Escrow Officer
We have on our list Banker and Mortgage Banker; the question is why both and what is the difference? From here on out we will call them lending professionals. The biggest difference is that traditional bankers are paid employees who perform many functions within a bank, loans being one of the them. Bankers are not always directly compensated for the loans they get approved and funded. A Mortgage Banker runs a business and relies on the closing of loans to support their business.
Banker: It is important to have a traditional banker on your team. They can facilitate portfolio lending, establish lines of credit or provide a proof of funds letter. These are just few examples of a banker’s value. This is a relationship that is developed over time, so the time to start building that relationship is now. If you are concerned that your accounts aren’t large enough for a banker to be interested in your business, you are wrong.
Mortgage Banker: Having a mortgage banker on your team is important because they have incentive to find the right loan to fit your needs. Remember, if the loan doesn’t close, the mortgage banker doesn’t get paid. The loan officer (who works for the mortgage banker and manages your file) has the ability to work with the underwriter (the group who evaluates: the loan, the borrower and the property) directly. In a traditional bank the underwriter and banker work for the same company which makes it difficult for the banker to be your advocate. Whereas a mortgage banker works directly with a neutral underwriter and can act as an advocate for you.
As an investor who does multiple deals, a mortgage banker can save you time which equals money.
Property Manager: Some investors chose to manage their own property and that is a great way to increase cash flow and the value of the property. However, if you don’t have the time or are not in close proximity to the property, a property manager is essential. Here are some of the things a good property manager can provide: expertise into the rental market, estimated costs such as maintenance management fees and utilities, just to name a few. A couple of the most important traits to look for in a property manager are a good communicator and history of successful management.
We are almost to the end of our series on creating your team. If you have any questions about potential team members please feel free to reach out to me.
Diana D. Hill – firstname.lastname@example.org