Posted: Fri Sep 21, 2007 10:42 am Post subject: Getting paid to supply commercial leads to a broker
I came across this ad in the San Fransico area craigslist:
Quote:
I work for a commercial lender that can do anything on the commercial side 500k and up. In exchange for you commercial loan leads I will pay you $1000 per lead and a percentage at closing. Let me know if you have anything.
There's a name and contact information but I will not post it here. Anyways I emalied the guy and this is what he says:
The Guy says
Quote:
How it works is if you give us a lead and we can work with them we will issue them an LOI. If they decide they like the rate and terms issued by my company and decide to move forward into the underwriting phase of our process we will pay you $1000, when the loan closes we will also pay you a percentage from there. It's not a scam, you could stand to make a lot of money from this if you have a quality lead. We also work out a program where we could move the initial amount up to $2000 and higher. Let me know if this would work for you.
The companys name is Remington Financial Group. Now I've checked out their website and it looks like there is only 2 locations, Philadelphia and Arizona yet the phone number supplied in his email to me, is an area code 847 which bases him in Illinois.
This sounds like a great opportunity especially if I supply him a lead or 2 but I'm still being very cautious about this. I'm also going to contact the Remington Financial Group and see if they have this guy working for them.
If you buy that I have some real estate in Florida for you. No offense it does sound like a good deal. But how would you know if your deal ever closed. I guarantee unless it was your friend as the client they wouldn't care who got paid what.
If you can seriously get commercial leads of real clients then I think you could do well to get hired at a lender that does this. The typical commision for a $500,000 deal would be around $20,000-50,000. Although it can take upwards of 6mo.-1yr to close. _________________ Eric Matthews
Posted: Tue Sep 25, 2007 8:46 pm Post subject: An update
The guy emailed me again asking me if I wanted to do this. I replied by asking whats the guarantee that I get paid. He asked me if I wanted to read and sign a fee split agreement. I said sure I'll take a look at it. I also asked him how quick the turnaround is he said its usually 3 to 5 weeks. I would also be getting a 1099 from them. Here's the agreement he sent me:
June 20, 2006
To: Lee Alexander
RE: Fee Allocation Agreement
Dear Lee Alexander
The purpose of this letter is to confirm the discussions between Remington Financial Group, INC (“RFG”) and Lee Alexander.
Sharing of Fees: If a referred Line of credit from Lee Alexander moves into phase one of our due diligence process and upon the receipt of the initial application fee. RFG will pay Lee Alexander in the amount of $1000. Such payment will be made within five business days of receipt of good funds by RFG. If a closing occurs on a funding with a Lee Alexander referred Line of credit and RFG is paid a fee with respect thereto, RFG will pay to Lee Alexander twenty five percent (25%) of the fee RFG receives with respect to the transaction. Such payment to Remington will be made within five business days of receipt of good funds by RFG.
Arbitration; Consent to Jurisdiction. Any claim, dispute or controversy arising out of or in connection with this Agreement, or any breach thereof, shall be arbitrated by the parties before the American Arbitration Association under the rules then observed by such Association. This agreement shall be governed by the laws of the State of Arizona
AGREED TO on this day of , 2006 by:
By: _____________________________
Mr. Andrew Bogdanoff
REMINGTON FINANCIAL GROUP, INC
By: ________________________________
Lee Alexander
No, I have not signed anything yet. I guess I could give it a try. There's no out of pocket expenses so I see no harm. The worst that can happen is that I don't get paid for referring somebody.
If you trully have a way to get good legible comercial leads get a copy of Scottsman Guide (commercial Edition) or go to scotsmanguide.com and find decent lender (you still have to filter through the brokers and resellers and scam artists ) and broker the deal yourself. If you not sure what to do give me a call or email me and I can help you out. Perhaps there is a good business venture in this.
Additionaly here is the main problems you will be facing. Who can you trust. Who can provide the financing. Who can pay you what you deserve . And whether or not your potential clients are even elligible for the loan in the first place.
Commercial deals are long and tough to do and because there is no regulations on them getting paid and working out a deal can get tough. No one wants to pay for a deal that may or may not be done and nothing stops a dishonest person from cutting you out of the deal when something does close. Also commersial deals tend to promise more commisions then they deliver. _________________ Eugene Volovik
Branch Manager
Team USA Mortgage
612-481-3127
Conventional, FHA and Commercial Lending
If you trully have a way to get good legible comercial leads get a copy of Scottsman Guide (commercial Edition) or go to scotsmanguide.com and find decent lender (you still have to filter through the brokers and resellers and scam artists ) and broker the deal yourself. If you not sure what to do give me a call or email me and I can help you out. Perhaps there is a good business venture in this.
Additionaly here is the main problems you will be facing. Who can you trust. Who can provide the financing. Who can pay you what you deserve . And whether or not your potential clients are even elligible for the loan in the first place.
Commercial deals are long and tough to do and because there is no regulations on them getting paid and working out a deal can get tough. No one wants to pay for a deal that may or may not be done and nothing stops a dishonest person from cutting you out of the deal when something does close. Also commersial deals tend to promise more commisions then they deliver.
Very good points there. I'll check out that site as well. Like I've said earlier, there's no money that I have to putdown or anything so the worst thing that can happen is that I supply a lead and it closes and I get screwed and don't get paid. I'll be angry for little bit but at least I haven't invested any money into this. Only time.
Yup that's what it's all about. You send a lead and even if it doesn't work out the way you want, there's nothing to lose. _________________ Procrastination is the enemy of your financial sucess
Posted: Fri Oct 05, 2007 5:41 pm Post subject: Remington Financial Group
Remington has as Decease and Refrain order in Califorinia. Check them out on the web and in blogs. Just google them. They are a dirty company that is being invested right as we speak. Don't send anyone there - they will truly be ripped off with all the upfront fees and the loans/deals will never close. I am a victim of theirs and there are many, many, many others. They have public records that can substantiate mail fraud, rackateering - well check it out yourself. I can't imagine anyone after researching them thoroughly that they would do busy with this bunch of crooks.
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