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Should Real Estate Agents Get Lending Licenses? More Work, Same Results · The Real Estate Agent Playbook

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  Oh man, this is one of my favorite with all of these commissions in The news
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  and buyers agent commission going away.
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  A lot of agents are looking at their business and
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  wondering is this sustainable?
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  Is this way of life?
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  Is my standard of living going to change with you know, all of these proposed
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  changes and so on that's all part of it We don't really control a lot of that.
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  You can control how you talk to your clients That's not
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  what this video is about.
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  This video today is about kind of a new trend I'm seeing that I'm ultimately
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  really concerned about and it's agents getting a lending license of some sort
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  whether that's a full blown lending license and doing loans as well as
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  transactions or, you know, being this non producing partner that lenders are
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  trying to, you know, blow up to agents and say you can make so much money
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  and you're leaving money on the table.
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  Well, there's a lot to go into that and I'm here to talk about that and
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  tell you that if you are not extremely seasoned, extremely experienced,
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  you could get yourself in a lot of trouble with this exact practice.
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  So stay tuned.
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  What's up guys, Jeremy Kane, the real estate agent playbook here helping you
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  win every single day at the game of real estate as a real estate agent.
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  And that's super important today as we talked a little bit about
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  what we're going to go into.
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  While you're here, like, comment, subscribe.
• 1:22
  Let's start some engagement.
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  I would love to be of assistance to you, whether that's checking out my webinar,
• 1:27
  subscribing to my new course, that's going to be launched here shortly.
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  Or just having a game plan call.
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  There's all those links below reach out.
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  Let's connect but let's get into this one So what I see happening
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  And you know, there's all kinds of different companies out there.
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  I'm not going to name companies I'm not going to name names, but what's going on
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  is there is a group of lenders who are You know with one company or another and they
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  are out there telling real estate agents.
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  Hey You know, your commission is going to be tight.
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  The volume's down.
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  This is a way for you to make more money and you don't have to do anything,
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  but you know, maybe take a couple of classes and get your lending license
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  and then we'll take it from there.
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  You can send all of your, your people to us.
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  We'll do the loans and you know, you'll get paid for it on the back end.
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  And that's a massive red flag.
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  And I'm here to tell you that if you are trying to come up in the real estate
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  industry, certainly if you're looking into being a lender and want to do that,
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  But if you're on the real estate agent train and you just think this is going
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  to be a side hustle, a way for you to make more money, it honestly doesn't,
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  doesn't really pan out because you're limiting yourself to, you know, you're
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  putting more pressure on yourself with these initial meetings with clients,
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  which if you're looking for an additional stream of income because you can't make
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  enough money selling houses or you just want all the money in the world, Right.
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  That's a possibility to the honest truth is you are doing your clients a
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  disservice because you will be trying to funnel your clients into this one
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  lending practice and all of that.
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  And the truth is it's not super out there, right?
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  I've even talked to lenders.
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  They're like, Oh, you don't have to disclose.
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  No, here's the deal.
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  If you're making money off your client, off sending a referral to somebody.
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  That probably needs to be disclosed.
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  And so, you know, kickbacks and all of that, we can talk about this till
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  we're blue in the face, the laws, this, the laws, that I don't care,
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  but from an ethical perspective, if you are sending somebody somewhere
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  and you're getting money from that.
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  You should absolutely tell the person that you're trying to send there.
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  And with that said, so this is really what's happening.
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  They're saying you can be a non producing partner.
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  You don't even have to get your full blown real estate lending license.
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  You can be licensed in X amount of States and we can do this.
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  And essentially.
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  What the lender is wanting you to do is be their marketing director and drive
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  a bunch of loans their way And they know if they get you signed up and in
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  this program to get these kickbacks That you're going to be more likely to
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  send them loans than you are already And the the hard part for me is the
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  lenders that are out there doing this.
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  They're spending so much time They're doing all their content tailored at this
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  they're talking to you know Agents all over the place and kind of pitching this
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  idea You But if they're, they're the ones that are building this kind of deal out,
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  how much are they doing in the loan world?
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  How many loans are they doing?
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  And so that's really what it's about is, you know, certainly if you have a very
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  best partner that you always know crushes deals, crushes loans, And you want to
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  try and do this all more power to you.
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  Talk to your managing broker.
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  They'll tell you the rules i'm not here for that But i'm here to talk about
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  your mindset as an agent And if you are pulling in this new, you know business
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  venture It's taking away your energy from the other things you do, right?
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  I talk to agents all of the time and agents that have agents in their
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  organization or training agents in their brokerage Whatever it is And
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  it's just like, you know, some agents do the work and some agents don't.
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  Agents that do the work and show up every single day, they're
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  going to move the needle forward.
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  And if you are that person that's doing the work, why would you divide that?
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  Right.
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  Why would you divide that for some little kickback for some
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  little split on the back end?
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  And then what's it look like after that?
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  Right.
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  What does it look like when we put, You into this mix and you have this
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  branch, you know, your non producing branch manager or whatever they're
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  calling it You know, it's some version of that who is doing the loans.
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  Is it the person that recruited you?
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  Is it somebody that they just find that they stack under you that's willing
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  to you know, give some of your money?
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  Give some of their money to you as the non producing partner as a lead source.
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  I just don't really fully understand that.
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  And so this trend is something that caught my eye and that's why
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  we're having this conversation.
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  And like I've mentioned, there are a lot of things that
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  come up when I think of this.
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  The first is they're using you as a marketing beacon.
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  Right.
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  So this person who's building out this organization, however you want
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  to call it, is out there telling you, okay, take these classes, get your
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  license, you know, quote unquote, it's not a full blown lending license.
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  I've heard it's not all the things you don't have to take
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  the test, whatever it is, right.
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  There's all kinds of versions.
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  And then they're saying then if you send us loans, we'll do them.
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  Well, who's doing the loans first and foremost, right?
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  Because is it the person that's selling you that's out there splitting
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  their time between building This organization and this residual
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  income stream or is it somebody else?
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  Where are the processors?
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  Where are the underwriters?
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  Who, who are the banks that they use?
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  There's a lot more that goes into a lender's, you know, success than
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  just, Hey, this is the scheme we got.
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  This is what we got going.
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  So that's the first.
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  And then if they're focusing on these pitches and building this organization,
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  How are they at servicing the client that you're sending to them, right?
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  Keep in mind that the most awkward and tough conversation for the
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  client, who is who we care about, right, is that with the lender.
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  And so, if this lender is focused over here half the time and over here
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  half the time, How are they doing?
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  Are they, are they up to date on the market?
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  There's a lot of things that a lender does that I don't want to do that
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  I can't have the conversations to have because I don't have a license.
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  And so if this lender is splitting their time, is that the service
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  that you want to be passing down?
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  I don't care if you're getting a kickback, right?
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  There is no kickback if the loan doesn't get done.
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  In time or, you know, you're putting your earnest money at risk or whatever.
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  And I'm not saying all of these people that are building these are bad, but
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  you just have to kind of sit back and think, I want somebody that I send my
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  clients to, or, you know, give them a referral to be 100 percent in on lending.
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  Certainly they're going to have their relationships.
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  They're going to manage their relationships with other agents.
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  I'm not saying I need to be the only one, but I am saying their
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  number one focus needs to be.
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  bettering their knowledge to help my clients, not me.
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  And so now if we're out there and we kind of have this jack of all trades, right,
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  this is why the big corporations haven't really taken a ton of market share.
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  The ones that have, you know, we'll show you the house, we'll
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  connect you to the lender.
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  We'll, you know, get you to the, our title company, all of the things, those
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  ones that have that all kind of in house.
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  Certainly they're doing it.
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  There's a perfect, you know, buy box for them.
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  There's there's a perfect avatar that is using that piece But when
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  you look at the overall market share, it's just not taking over.
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  And so when we're looking at this and Talking about all of this If
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  you are an agent splitting your own attention right to hey You can do this.
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  You can use me as a lender.
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  You can use me as an agent Or you can use me as both.
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  There's some definite high level sales skills that are going to be needed in
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  order to make sure, first of all, that client's giving everything they need,
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  but it's all explained and disclosed and, and everything's kosher on that end.
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  So that's my biggest concern, honestly, is just, are we really going to do this?
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  Like, do we really just think that clients are going to fall out of the sky?
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  Do we really think that we have one client?
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  We need to make money off the lending and money off of the
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  inspection and money off of the.
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  All of these things that, you know, kickbacks could potentially get put into.
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  If, if this model kind of takes off, no, right.
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  Be good at what you are good at.
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  If you want to be a lender, go be a lender.
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  If you want to be an agent, go be an agent.
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  There is.
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  Very few people that can master multiple streams like this, especially
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  when it comes to consumer behavior and what they're looking for.
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  And so if you can be an expert in both and you can divide your
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  time and you can absolutely do that, please go about doing that.
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  However, if it's just, Oh, this side hustle, and this isn't people
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  going to the top of the top.
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  Certainly they're going to broker owners, team leads, producers.
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  I get it.
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  Right.
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  I've heard the pitch several times.
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  I'm not doing it.
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  Right, but if you're look stepping back and looking at it Is this really
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  what's best for your career for your energy for what's going on because I
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  know Especially in our world of niching down and all the things and and the
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  abundance mindset that can come If you're scarcity mindset working with
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  one client and trying to get the maximum amount of dollar out of that client
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  It's likely their experience will not be great in one or all of the things Right.
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  I tell my new build people all the time because the builders are kind of set
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  up like this Not necessarily the same kind of setup, but they have lenders.
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  They have title.
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  They have Sales reps all the things and I always tell my clients one part
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  of the process of a new build sucks It's either the construction part.
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  It's the loan part It's the closing and possession part,
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  or it's the, warranty part.
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  Same goes for this model as you go, you cannot be a master of all the things.
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  And I get it.
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  You don't have to be the master of the loan, but the person that
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  you're, you know, the branch manager for certainly does, and you're kind
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  of tied to that person and, and.
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  If that person's taking some of their money, you know, in the
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  broker world, the broker kind of controls that commission piece.
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  But if they're taking the commission that's offered on the same
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  house, the same loans, the same banks, whatever they're paying.
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  Right, and now the branch, non producing branch manager, you has to
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  get a piece, then the lenders getting less and you know what happens, right?
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  All you lenders, love to jump around companies and do all the things.
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  So, these are all red flags that I would certainly be looking out for if I decided
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  to spend some of my time getting whatever type of licenses that they're pitching.
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  And so, as we move forward, you say, Jeremy, well what do we do?
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  Right, what do we do with the, or getting, you know, commission cut in half.
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  I honestly am telling my hundred agents in 27 different states.
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  To focus on your client experience the people that know like and trust you
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  they've already signed up Make sure they are having the very best service
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  And if there's not a lot of those people Because you're newer to the
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  industry take your sphere and expand it.
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  This is exactly what I talk about in my course You know, certainly
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  I I've lived where I grew up.
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  I went to high school here I moved up north an hour for college and
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  came right back I get it, right?
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  I have the sphere built in, but in my course, I go through exactly how to
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  build a sphere, both systematically and strategically to make this a reality,
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  to make your entire business model run almost on autopilot with people that
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  already know like, and trust you that you do not have to, you know, get every
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  single piece of the pie when it comes to their real estate transaction, I promise
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  you that if you are providing white glove service and all of the things.
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  Versus taking this one person and trying to get everything from it You will have a
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  more lucrative payoff with just providing the absolute best value with what you're
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  good at So if you want to talk about that, let's book a call And, you know, honestly,
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  if you're watching this, you know, and you're a part of one of these or you're
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  a lender or whatever, more power to you.
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  Do what you're doing.
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  However, I just want the agents to know that this is something
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  that's coming their way.
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  And, of course, you're selling them the dream.
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  It looks great.
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  It's, you don't have to get your license.
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  You just do this.
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  You do a couple classes.
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  We'll take care of the rest.
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  Just send us all your loans.
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  And that's the part that makes me wonder, are you able to service the loans?
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  Are you able to do those things?
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  And if you are absolutely great, more power to you.
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  It's just not something that I want to spend any of my time on.
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  My time should be spent on servicing my clients.
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  And what I'm doing so a little bit of a soapbox there.
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  I'm just sick of hearing it It's it blows my mind that we can't focus on
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  turning this one transaction into seven referrals for real estate business We
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  need to turn this one transaction into you know, three or four or five income
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  streams Just not my cup of tea like comment subscribe I hope this helps if
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  you're seeing this out there and you have some comments below definitely
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  do it I'd love to have a conversation.
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  We'll see you next time