Part II: You talked about referral fees to real estate agents but I am a licensed real estate agent and a licensed loan officer. Why can't I earn money on both?
--Carla from California
Last week I spoke about the legality of doing both, again emphasizing that I am not giving legal advice. Today I will speak hypothetically. What if it were legal, should you do both? The answer is definitely not! I have seen business models in which people are insurance agents, loan officers and real estate agents. That way they can make more money off of each transaction or customer. These "generalists" in general are not the highest income earners. They are typically people who don't excel in one area. A top producing real estate agent does not "add" insurance. Why?
There are a multitude of reasons, but I will just add one important marketing factor. If you are a loan officer, one major target for you is real estate agents. But why would a real estate agent refer you deals if you can also compete with them within the real estate sector? I know I would not. I would want my loan officers to be at the top of their profession and not in competition with me. There are several additional factors I could add in this answer -- but for now this important fact will have to suffice.
Dave Hershman has been the leading author and a top speaker for the industry for decades with six books authored and hundreds of articles published. His website is www.originationpro.com. If you have a reaction to this commentary or another question you would like answered in this column? Email Dave directly at firstname.lastname@example.org.