Broker
When looking for advice regarding real estate investing or buying a property, many people across the industry will tell you to speak to a broker or go to a brokerage, but what that means will vary depending on what you are looking to do.
Real estate and mortgage brokers are vital parts of the real estate industry, and knowing their roles and how they can impact your investments is essential.
So, to help you navigate the world of brokers and real estate investing, let’s dive in.
But first, if you want to connect with a mortgage broker with the best rates and products available from many of the top lenders in the country, click the link below for a free strategy call with our expert mortgage team at LendCity.
What is a Real Estate Broker
While you may have heard of real estate agents and realtors, you may not be as familiar with real estate brokers. These real estate agents have received additional training and qualifications that allow them to work above other agents and hire real estate agents to work under them.
Much like real estate agents, real estate brokers receive payment through commissions. However, on top of any commissions they make on their deals, they typically take a portion of the commissions earned by their agents as well.
There are three main types of real estate brokers you may encounter:
Associate Brokers
These individuals are licensed as brokers but choose to work for another broker instead of hiring their agents. This is common among newer brokers who wish to shadow someone more experienced to build up their skills.
Managing Brokers
These individuals are responsible for the daily operations of their brokerages. This includes hiring agents, administrative staff and more.
Principal/Designated Brokers
These individuals are often also the managing brokers of their company, but sometimes, they are different people. A designated broker is the person who supervises the agents to ensure they are following all local, provincial, and federal real estate laws. These individuals are also often the policyholders for any insurance that the company may possess and are required to sign off on the company’s financial statements. They are also commonly known as the broker of record.
What is a Mortgage Broker
Much like a real estate broker, a mortgage broker is a mortgage agent who has gone on to receive additional qualifications that allow them to manage and employ mortgage agents under them.
Mortgage brokers and agents work with various lenders to offer a more comprehensive array of products to ensure you get the best available rate and mortgage you can qualify for.
They differ from mortgage specialists who work specifically for a particular lender and thus can only offer their products.
If You Are Ready to Invest
If you are ready to start investing, let us connect you to our network of real estate professionals today so that you know you are only working with the best. All you need to do to get started is click the link below for a free strategy call today.