The way we look at it however is this sort of situation would be OK - but its a one time referral fee - any sort of arrangement with a long-term referral fee / borrower protection is reserved for true professional mortgage brokers - who like @Chris Seveney mentioned, would be doing more legwork on the deal vs. a simple and clean referral handoffvia CFPB on referral fees for business-purpose hard money loans:§ 1024.5 Coverage of RESPA.THIS VERSION IS THE CURRENT REGULATIONView all versions of this regulationSearch this regulationRegulation X(a) Applicability.

Subject property that can cashflow above the minimum debt service coverage ratio.

If you fail to do so and the insurer's ability to defend you is adversely impacted, your coverage may be affected.

As the foundation of real estate investment analysis, underwriting allows us to evaluate potential returns and associated risks accurately, ensuring informed and confident investment decisions.Understanding critical metrics like Net Operating Income (NOI), Capitalization Rate (Cap Rate), Debt Service Coverage Ratio (DSCR), Gross Rent Multiplier (GRM), and Cash-on-Cash Return is essential.

What is the debt service coverage ratio?

I'd encourage you to speak to an attorney to make sure you are set up with good protection to cover any incident that may happen i.e. umbrella policy or increased liability coverage. 

Proper liability coverage.

Disclosure - I’m “just a landlord” … but willing to chime in….the first question is - was this supplemental payment documented in writing?  

We BRRRR 8-10 per year and the flips supplement the money left in the BRRRRs.

The price is extremely low, but I needed to supplement it with other platforms at times.