Investing through a Loan Broker
Most private money
trust deed investments are conducted through loan brokers, who either arrange
new real estate loans, or who broker the sale of existing
loans. If truly an expert in the business, the broker brings
vast knowledge about the origination and administration
of trust deed investing. One of the most important requirements
in trust deed investing is the knowledge, experience and
integrity of the loan broker through whom the transactions
may be made or arranged. One possible indicator of a good
broker is his membership in professional trade organizations
such as CMA (California Mortgage Association) or CREFF
(Commercial Real Estate Finance Forum). Membership in a
professional association requires a vigorous educational
program designed to keep the broker apprized of every nuance
of the law. Additionally, a loan broker that has been successful
enough to withstand the test of time is one of the best
recommendations of all.
Before placing your trust and money with
a Loan Broker, you would be wise to call: (1) The Department
of Real Estate to determine if the broker and any representatives
are properly licensed, how long each has been licensed,
and whether any of the licenses have been disciplined:
and (2) the local Better Business Bureau to ask if any
complaints have been lodged.
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