Canadian Entrepreneur with Global Invest, on a mission to help people invest in real estate to create generational wealth.
Nowadays, the importance of a broker in the real estate investment sector is well known. A broker stands as an intermediate between a financial institution and an individual who needs a loan in order to purchase a property. When selecting a broker, it is important to look at several elements. There are many brokers who claim to be qualified but few have really mastered their mission. To ensure you make the best choice for your situation, it is essential to evaluate your broker carefully. Here are few tips on how to find your perfect broker.
Why Hire A Real Estate Credit Broker?
To proceed with your real estate investment, you need the agreement of a bank. Hiring a broker is the easiest and quickest way to accomplish this. Purchasers often turn to a real estate credit broker to obtain attractive loan conditions. The main advantage of working with a broker is that it saves you time.
Simply put, a broker does all the work for the investor. The broker is there to guide you through all the steps you need to take including preparing the files or filtering out the banks that might be interested in your project. A broker is not only involved in negotiating the various loan offers, but they also pay attention to smaller details you may overlook.
The Different Types Of Brokers
Like in many other industries, there is a wide range of brokers, each with specific qualifications and skills. These include agency brokers, online brokers and freelance brokers.
1. Agency Brokers
There are brokers who work in specialized agencies. This group of professionals is dedicated mainly to assisting investors wishing to secure a home loan.
2. Online Brokers
Digitalization has revolutionized many sectors and the real estate and finance sectors are no exception. These platforms and websites allow you to compare the best real estate rates on your own. With this information, investors are able to make their own choices regarding the best mortgage options.
3. Freelance Brokers
Freelance brokers operate a little bit like agency brokers in terms of their available network and contacts. Freelance brokers offer full support to their clients, as they often adopt a local approach, and are often able to get to know investors better and understand their needs because they don’t have as many clients.
How To Choose The Right Broker For Your Real Estate Loan
Due to the increasing number of brokers available on the market, one is no longer safe from poorly qualified agents or even from mere salespeople who lack real estate and investing experience. Therefore, selecting the right broker involves checking the following elements.
1. They’re properly licensed and certified.
In order to avoid stumbling on the wrong bird, it is best to check that your broker is licensed. Moreover, the broker should have a level one diploma in intermediate banking and payment solutions. That’s a very reliable requirement. Furthermore, the broker should present you with a certificate attesting that they have been trained for brokerage. For instance, in France, a broker would have to be registered with ORIAS in order to work.
2. They’re part of a wide network.
The broker that you will eventually choose must have a network that is not only wide but also very efficient. Here, the methodology doesn’t matter, only the results. Indeed, some brokers work with a single bank, while others prefer to diversify their network. Likewise, they should inform you of the method they are using.
3. They’re transparent.
The best way to choose your broker is to make sure that the work is achieved with complete transparency. Before you begin working together, your broker should present all the necessary information to you upfront and in writing. This document should include the broker’s fees, the banking institutions they work with, their contact information and information on the remuneration received from the bank.
4. They have success stories.
Check your broker’s history and investigate their past dealings. Question your broker’s knowledge related to real estate investments. Verify that they’ve brokered successful deals for previous clients and for their own investments. If they’ve never taken the risk of investing themselves, how could they possibly help you? It is necessary to always confront your broker and conduct an interview to assess their knowledge and skills.
5. They have a positive reputation.
Finally, if any of your friends, family members or colleagues have had successful experiences with a broker in finding a home loan, ask if they would recommend their broker. Once you contact the broker, don’t limit yourself to the opinions of your loved ones. Use the criteria mentioned above and judge for yourself whether the broker is trustworthy. Additionally, check out their online reviews. You may use these ratings and testimonials to get your own impression.