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tmendoza27
328 Posts |
 Posted - 05/05/2008 : 11:01:17 AM
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| Just curious, what is the lowest commission you will take on a deal? It seems that lately, I've had to cut my fees, with clients complaining about fees, and hearing all these no closing costs loans going around. How much will you cut your fees, to save a deal?? |
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EMScommercial
5141 Posts |
Posted - 05/05/2008 : 1:08:01 PM
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that depends on the complexity of the deal.
if it's a very easy one - one that won't need much babysitting, i'll cut mine down considerably.
otherwise, i stick to my guns - knowing that no one else would do the work for less than i am willing to do it.
if the borrower is holding you over a barrel for fees, don't waffle... be firm to your comfort level... if they don't like what you are willing to do, don't sweat it.... there is a good chance if they are hassling YOU.... they wouldn't go through with the deal all the way to the end anyway.....
some borrowers seem to like to hear themselves talk....
have a nice day.... |
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tmendoza27
328 Posts |
Posted - 05/05/2008 : 1:36:51 PM
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| Thanks for the tip. |
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ski2313
762 Posts |
Posted - 05/05/2008 : 1:45:52 PM
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I typically make $2000 my target on every loan. Maybe that seems low to some people, but in my area the average loan size runs about $135k
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dtabar
814 Posts |
Posted - 05/05/2008 : 1:56:29 PM
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| $2000 ain't bad. Close 4 of them and you're making a decent living. |
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tmendoza27
328 Posts |
Posted - 05/05/2008 : 2:01:32 PM
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| Well I only get 40% on my deals...and my broker charges about $3500 in 3rd party fees. So it makes it harder to be competitive. |
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Carpet Muncher
1385 Posts |
Posted - 05/05/2008 : 2:15:29 PM
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quote:
Originally posted by tmendoza27
Well I only get 40% on my deals...and my broker charges about $3500 in 3rd party fees. So it makes it harder to be competitive.
That is way too high. Time to move on. |
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bordobo
5 Posts |
Posted - 05/05/2008 : 2:22:26 PM
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Antonio--why are you still there? That is crazy!
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tmendoza27
328 Posts |
Posted - 05/05/2008 : 2:36:08 PM
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I mean my total 3rd party fees are about $3500(which includes title&escrow). we have our own in-house escrow.
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benjamin
2849 Posts |
Posted - 05/05/2008 : 5:20:08 PM
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| Still too high, your own generated deals should get about 70% or more, |
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1stintegritymort
1298 Posts |
Posted - 05/05/2008 : 5:22:58 PM
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| $3,500 is the highest i have ever heard. you do have the ABA Disclosure right? what if you sent the title to another company? what would your broker do? if he fires you for sending the title somewhere else, that is highly illegal. |
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rtrefflich
3892 Posts |
Posted - 05/05/2008 : 5:23:07 PM
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Thats way too high. I have escrow on most of my refi's and our third party fees aren't that high.
On an easy deal, I could care less how much I make because it takes very little work, on hard deals I need to make as much as possilbe. Time is the most important thing, the more time the more money.
Alot of guys try to make it up in volume, but you can't do a ton of volume if you have no time.
quote:
Originally posted by tmendoza27
Well I only get 40% on my deals...and my broker charges about $3500 in 3rd party fees. So it makes it harder to be competitive.
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Rene Viloria
1888 Posts |
Posted - 05/05/2008 : 5:28:30 PM
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| if is not a friend or family usually 5k, I really do not discuss fees! is said closing cost is about 10k to 15k depending on the loan amount but is all financed in the loan... do not lower your fees, sell better... Sometimes i show up to the closing with a check since i am the owner...And if they complain too much i lower 275 or something like that ...If is fha with all the work involve and getting paid w2 0 they can go somewhere else... |
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CoolMtgGuy
4094 Posts |
Posted - 05/05/2008 : 7:43:31 PM
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| I have done several pro bono deals and a few where I gave up 50% of my fee at the closing table when the borrowers came up short with funds. Those remain some of the most meaningful transactions in which I have every participated. |
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Hustler12
1331 Posts |
Posted - 05/05/2008 : 7:57:45 PM
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$3500 in junk and 3rd party is why you are having a hard time with your commissions. I try to make 4k/file and do 3-4 a month. Of course, I am in CA so my average loan amount is in the mid-high 300's. I charge 1pt no matter what up front. I'll cut my junk fees because it seems like a win to the borrower. I also send a gift certificate loaded with business cards. I keep 100% of my revenue so it makes it a little easier.
1pt on the front. I call it "standard origination" and I never get any pushback. |
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kellamtom
648 Posts |
Posted - 05/05/2008 : 8:08:04 PM
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quote:
Originally posted by tmendoza27
Just curious, what is the lowest commission you will take on a deal? It seems that lately, I've had to cut my fees, with clients complaining about fees, and hearing all these no closing costs loans going around. How much will you cut your fees, to save a deal??
clients complaining about fees; you got that right, i locked 70k purch at 5.875 and this guy went and found an appraiser to do the appraisal for 25.00 less than my appraiser, it's an easy deal making about 1k and 3 on the transaction as i'm also married to the realtor and i stole the loan from a c/w retail lo |
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homebroker@sbcgl
3859 Posts |
Posted - 05/05/2008 : 8:22:47 PM
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| $4000 a deal at least. In CA not to hard, sometime its less than 1% even in this market, a very fair deal. |
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tmendoza27
328 Posts |
Posted - 05/05/2008 : 9:33:30 PM
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| Well I'm given 3 to 4 internet leads a day. Right now I have 8 files either approved or in submission mode. So I should fund minimum 5 to 6 loans this month. Average $3000 in orgination per file, I'm just wandering if I should just take whatever I can on this deal, since I get paid through tier, after I reach a certain amount of revenue. |
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