Ways to Source Funds

Most people who invest in real
estate make money in only one or two ways: They buy properties and borrow
money from the bank to do so, or they deal in mortgages. But many
more sources for funding and profiting from your real estate investments
exist. You can use these sources of funds to buy property. Do not use
your own money. Create money from other sources to get into real estate.
Mortgage Origination
If you’re actively buying or selling property, you’re initiating, referring,
or acquiring mortgages. It’s customary to be paid for these services by affiliating with a mortgage company, a mortgage broker, or network
marketing companies that do mortgages.
Affiliate with some good mortgage brokers or become one yourself. Go
to a variety of mortgage companies—at least one main company plus
two or three secondary ones—and research the best deals available at a
given point in time.
Investors (and others) who attract customers needing a mortgage are
called mortgage originators. Originators are paid anywhere from 30 to
70 percent of the up-front fees on a mortgage—just for marketing and
bringing in customers. For example, if a mortgage broker is working on
a $200,000 mortgage that has two points ($4,000), the originator
would receive half, or one point ($2,000), for filling out the application
and helping to start the loan process. I suggest you should get about
half, or at least 20 to 25 percent, of the points for referring mortgages
to a mortgage company. A lot of times, you can actually become an
employee of the mortgage company, so you don’t have to be licensed.
(Since every state is different, check with a local mortgage company
about these requirements. Also note that in some states, paying fees
to mortgage originators is illegal.) Please send me an e-mail if you want
to learn about affiliating with a mortgage company, My email is: