This Is What the Mortgage Lending Industry Can Teach aspiring Entrepreneurs About Successfully Creating Multiple Streams Of Income!
So how people do you know personally or professionally who’ve recently purchased a home and or some sort of investment property?
And how many of them, secured some type of a mortgage, in order to do so? Because by and large, only one to two percent of all house or investment property transactions, are done by cash on the buyers part.Correct?
Meaning, they don’t need to finance any part of their purchase. Although obtaining some type of ongoing financing, is pretty standard, is it not? Absolutely.
And guess what else is pretty standard, when it comes the multi billion dollar a year mortgage lending industry?
Multiple streams of income producing cash flows.Huh? While it may not be as obvious, to the general public.It’s a well known, and fully established fact.
the mortgage lending industry, (even though) it’s highly regulated, is an incredibly lucrative industry.On many levels.As you’re about to discover.
So What Exactly Can Aspiring Entrepreneurs Of All Shapes And Sizes Learn About Creating Multiple Streams Of Income Producing Opportunities From The Multi Billion Dollar A Year Mortgage Lending Industry?
So glad you asked.Typically, after a potential borrower of some kind, has done all of their preliminary homework. And they ultimately decide on which lender they will actually apply for some type of mortgage financing with.
Normally, one of the first, semi substantial fees they will pay, is often referred to as a one time, “loan origination” fee of some kind.Ever heard of it?
Typically, this fee amount, is usually, no more than one – six percent of the actual amount borrowed.Just depending on what the loan amount being borrowed, is actually being used for, and the repayment terms, and the creditors current credit rating etc.
The Actual Reason For Your Your Mortgage Loan And Your Repayment Terms Has A Lo To Do With How Much The Total Fees Will Be To Qualify For The Loan!
Say for example. You or someone you know, applies for a $400,000 dollar mortgage loan to buy a home.With specific repayment terms of whatever.
Your one percent “origination fee”, would cost you an additional $4,000 dollars, on top of any other additional fees, you would charged, for borrowing money.
And BTW, this loan “origination fee, typically usually applies, to borrowing money to buy a car, refinance some accumulated credit card debt or to pay off some student loans of some kind etc.
But your one (or X) percent loan origination fee, helps the lender, pay their staff, to pull and review your most recent credit report. And prepare and file all the necessary paper work and or forms etc.
And believe it or not, the loan “origination” business, in and of itself, is a stand alone, multi billion dollar a year business.And tons of licensed lenders, make really good money because it.
So Just Because Lenders Charges All Types Of Fees How And What Potentially Valuable Lessons Can Aspiring Entrepreneurs Of All Shapes And Sizes Learn From These ll Too Common Procedures?
Again, great question. And so glad you asked. The other all too common fee/cost, which is automatically built into your/our cost to borrow mortgage loan money.
Is a monthly service cost of X. This is where an entirely different lender, from the one you originally got your mortgage from. Charges your original lender, a monthly service cost of X.
In order to make sure, your periodic payment, goes to the right place. This ongoing administrative process, also includes, recording the proper statements.and making sure you receive any and all necessary paper work or forms etc.
Which means, the “loan service-r” company, has professionally employees, who are either salaried and or paid by the hour, to handle this ongoing process for you.
And that cost, comes directly out of your monthly or periodic payment. Along with the ongoing interest, and repayment of the principal, (original amount borrowed), and the “loan/mortgage service-r” company, is also a completely separate company, from the one you originally got your mortgage loan from.
So What Exactly Are You Gonna Start Doing In Order To Create Some Form Of Multiple Streams Of Income Producing Opportunities?
So let’s quickly review. As you recall. Whenever you and I, initially apply for some type of mortgage lending.
On top of all the other initial cost. There’s also gonna be, what most lenders refer to as a loan “origination fee” of some kind, correct?
Which is the initial front end of their sales funnel, right? Then, once your/our mortgage loan of X amount, gets approved. And you begin periodically repaying the loan.
Another completely separate lender, starts administering the ongoing servicing of the loan. And this company, which is typically referred to as the “loan service-r”, they get paid, right out of your mortgage payment proceeds.
You Definitely Can And Should Create Cash Flow Versatility Within Your Entrepreneurial Venture!
Next, since part of your periodic/monthly payment, is interest on the loan amount you originally borrowed.The current owner of the mortgage, receives part of that payment, for owning the loan.
However, if or when your loan gets sold to a completely different lender/investor. None of the repayment terms of your loan changes.(And this can and often does happen multiple times over the course of a 15-30 Year Mortgage Loan Obligation.)
But behind the scenes. Your “loan service-r” company, makes sure, every body receives their necessary payments and paper work etc.
So now let’s consider, your semi cash strapped, small business and or service.(Just in case, you’re visibly scratching your head, wondering, ‘what’ if any possible connection there is.)
There Are Literally Tons Of Untapped Profit Centers Waiting To Be Discovered In You Small Business And Or Service!
Case in point. Let’s say you’re one of the top three, senior marketing directors, for an extremely popular beverage distributorship.
And one of your most popular, higher end, dinner wines, normally starts at $389 per bottle. And one of your higher end champagnes, normally starts at $550 per bottle.
And you normally buy those outrageously expensive, half and full page ads, in various specialty magazines.These are your traditional, front end sales, correct?
However, now that both you and your entire, firm are far more marketing savvy.You also, about every 90 days or so.
You host, (100% finance) a really cool breakfast, for 50 of the top, district mortgage brokers. And you provide each one, with a free, bottle, of your higher end champagne, which typically retails for $650 dollars a bottle.Say what?
Knowing, they’ll share it, with close friends, relatives, other co-workers, neighbors and or fellow association members.
You’ll discover, the back end component, of this long term marketing strategy in part two, okay? Thanks.
Hopefully, you can now better appreciate, what the multi billion dollar a year mortgage lending industry, can teach aspiring entrepreneurs of all shapes and sizes, about creating multiple streams of income producing opportunities.Would you not agree?
Who can Seriously Argue With Creating Multiple Streams Of Income Producing Opportunities!
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