Realtors loaning commission @ 2.25% rate post closing 2nd mtg

[Account Closed]

Anyone ever heard of Realtors loaning the commission @ 2.25% interest rate as a Cash Out 2nd mortgage above 97% CLTV post closing?

Example:

500,000 purchase

x       3%

$15,000 commission

-  5,000  for tax realtor has to pay

$10,000 loan amount @ 2.250% interest rate x 360/60 = $38.20 mo.

A $10,000 post closing cash out loan with a $38.20 mo. could help with the move and repairs, etc.    

Any realtors offering this yet?    

[Marc Middleton]

I pretty much answered your post with my reply and you replied back with the same points.

However, I'm noticing you use a lot of the same key words together when they aren't grammatically required, which means you are blogging to gain SEO in certain key words. 

In fact, a lot of your posts reference realtor rebates. So when people on the internet are searching these terms, you are hoping they find your name & contact info for referalls. Not a bad strategy, but I'm not going to keep responding to these types of posts. The whole premise is insane and no one has even thought of this idea, loaning your whole paycheck at 2% for 30 years to a buyer. Its just something you wanted to write about to get a long topic going with lots of replies and SEO/web traffic. 

With regards to 'thousands of agents offering this', that is another fallacy. Realtors who work hard aren't giving their paychecks back to their buyers who normally make more money than them.  And we DEFINITELY aren't giving our commissions back to our investors who take 1+ year to buy a property. 

You also seem to have the opinion that agents don't do a lot, get a referral and make an easy 10K. Yet I would say its the realtors that bring the business to mortgage brokers, so the reverse could be said (all you did was push paperwork for the client I sent you, why should you make 2 points on my buyer's loan when I did all the work). Research actually shows that of the top 10 jobs to be eliminated in the coming years due to technology, it shows Mortgage Brokers, Not Real Estate Agents. Sorry :-(

The Whole VA/USDA/97% lTV doesn't really apply to this website either, (which again you seem to be typing in order to get active discussions going). Almost everyone on here, unless they live in the duplex, are investors who want to find well performing ROI properties and they require AT LEAST 20% down. And investors aren't getting 100% USDA loans on multi-family properties so why even bring it up? just to pepper your posts with seo-friendly keywords?

Best of luck to you man but we'll keep working hard and earning our paychecks.