Getting a MLO to Understand

[Lonnie Pickard]

I'm hoping to get a little insight and/or suggestions dealing with MLO's.

I primarily do lease options & I've been contacting numerous loan officers/brokers explaining that I'd like to send potential clients their way & that I'd like for them to run an initial credit check to see if the tenant/buyer could qualify for a mortgage within 12-24 months if they took the necessary steps to clean up their credit.  For some reason, I haven't found any that's willing, which I don't understand because they could be getting a lot of clients.  Below is the actual email that I send them.  Any suggestions would be greatly appreciated.

"My name is Lonnie and I'm an investor specializing in lease options. My partner & I are looking for a loan officer in the area to send potential clients to, in return, you let us know if we can work with them.

What we do is enter into a lease option agreement with the seller with the right to sublease the property. We then find a tenant/buyer, if it's a sandwich lease option we install the tenant/buyer, take an option consideration from the buyer and down the road when  we settle the property we either assign our agreement with the seller to the tenant/buyer or we do a double close.

If we are going to wholesale the lease option from the start we enter into a lease option agreement with the seller and then assign that agreement to the tenant/buyer and collect an assignment fee.

What we would like for you to do is run an initial credit check on the tenant/buyer to see if they would qualify for a mortgage within a 12 to 24 month period if they acted to correct the issues on their credit. You can then work out an agreement with the tenant/buyer as to them being your client.

If this would be of interest to you, don't hesitate to contact me."

[Bill Gulley]

Drop all the lease-option talk, tell them you have a buyer you are working with and want to send them in to be qualified. Tell the buyer to apply for a mortgage and you may need a contract for them to go there.

If they qualify, then sell it. If they don't. then knowing where they are, ask the RMLO about assisting the applicant with a lease-option until they can qualify. The RMLO will already be involved with an applicant.

Don't use banks, those are regulated RMLOs with a job, find an independent mortgage broker in a mortgage company, they have the leeway to assist without banking regulations and liability issues.

There are RMLOs working with investors, but be very careful as they only need 20 hours of classes to get a license, what they suggest is not always compliant outside traditional lending. Good luck :)