Should Investors Pay $0 in Origination Fees? If they could...

Have you ever been rejected? but in a kind way?

I was (kindly) rejected by some good clients when I first opened up the possibility of investors closing their loans with $0 in origination fees -- I literally just wanted to save these clients tens of thousands of dollars per year by simply showing them how to originate their own loan (hence saving in origination fees), clients that I would easily call friends at this point.

Surprisingly, they said "thank you" - and then, "no thank you."

I was dumbfounded. 

"Dude, I'm doing your loans and you're gonna pay me $10k+ easy this year, I can just show you and you can teach your mom, sister, fiance, etc. because you don't even need a license for DSCR OR Hard Money loans in 39 states!"

My friend replied, "it's cool, I'd rather just pay you to figure it all out for me."

Ironically, feeling that 'rejection' actually did 2 things for me:

1. It solidified the true value of being a mortgage broker: that my worth is based on the time and problems I can solve for my investors without them having to think about it

2. I genuinely realized this offer isn't for everyone...and that's okay.

If you're an investor making way more in your own business, your flips, your property management company, your real estate brokerage, your call center, etc. - then spending the 5hrs on every loan to figure this out probably isn't worth it.

That does leave the other side of the coin though.I would probably ask myself when it would make sense?

"Would it make sense if buy-and-holds or BRRRRs were my main source of business, that maybe I (or my team) do our own loans?"

"Would it make sense if I'm already in a mastermind of other investors, and I needed a secondary source of income, that I could also start to offer broker services to my friends and investors?"

Keep in mind, my average commission size was $4900 across 130+ loans in 2024.

That means you're either saving that much money or making it on each loan you do.

I recognize doing loans is not for everyone. 

But for the right people, it's liberating. 

If this sounds like a skill you'd like to learn, I'll show you how to do this inside of my ZERO Origination Investor newsletter. https://dscr.zeroorigination.com/ or link in bio

Fernando Corona