Rehab Financial Group offers a paid referral program for all brokers and mortgage loan officers whose clients fund their loans through us. Brokers and loan officers do not need a license to sell or be paid commission on our bridge loans, so our referral program is open to those looking for funding for their clients.
When you use RFG for sourcing capital, you’ll have access to our speedy approval and closing process and multiple options of payment. Referral payments can be for a simple customer handoff or with your complete involvement. Naturally, we get many questions about how this process works. This article will walk you through the process and hopefully answer many of the questions you may have.
Step 1: Initial Contact
RFG speaks to hundreds of brokers on a monthly basis. These conversations usually go one of two ways. One group calls for general information, wanting to know more about Rehab Financial Group and how our business works. We’re happy to answer any questions and explain the business.
The second group comes to us with a specific client or deal in mind. On these calls, we give you a credit matrix outlining our products, run through the numbers, talk about the borrower’s situation, the property, and the deal. Often, our sales representatives can say if the deal can move forward and what the rate and cost would be on the initial call.
Before you take the next step, you’ll need to become an RFG approved broker. This is as easy as filling out and signing our broker agreement. Approvals are typically provided within hours.
No matter which group you fall into, give us a call! We’ll answer all your questions, give you the background on RFG, and provide you with everything you need to take the next step.
Step 2: Create Your Broker Profile
When you’re ready to move forward, our sales reps will send over some information about RFG and a link to create your broker profile. If you do have a specific deal you’re working on, and haven’t talked to a sales representative yet, you’ll need to do so before creating your broker profile, to make sure that it’s a worthwhile project for RFG to take on.
The most important part of the broker profile is uploading all of the required documentation. We offer one of the most aggressive products in the bridge lending space, so underwriting cash flow is incredibly important. The documentation we need on your borrower includes:
- Completed Application (with releases)
- Last 2 years’ tax returns (both business and personal)
- Business entity documents that name the people authorized to sign for the entity
- Agreement of sale
- 3-6 months most recent bank statements (business and personal)
- 2 most recent pay stubs (if applicable)
- Copy of driver’s license
- Itemized list of repairs
The most significant holdup in this process is chasing down needed documents, so by making sure you have everything we need, the process will be expedited.
Step 3: Approval & Closing
Once you have all of the documentation uploaded to your broker profile, we’ll review it and send it to our processing department. They’ll get it ready from underwriting and pull the credit straight from our system.
Loans are typically approved in just a few hours, but occasionally it can take a day or two. You’ll have a dedicated account manager who will spearhead the process of closing the deal. Loans are typically closed within two weeks, or even faster for repeat investors.
Interest reserves are typical for every loan. Right now, during the pandemic, we’re applying 3-6 months of interest reserve, compared to 6-12 months from our competitors. In normal times, the interest reserve varies, but is always at least one month.
Step 4: How Brokers are Paid
Brokers have two choices for their referral payment. RFG can remit a portion of our points to you, or you can charge on the HUD.
When we remit our points, we’ll typically bump up our points by a small amount and pay you from the total. If you choose to charge on the HUD (the most popular option), we will charge our points and you can charge your fee on the HUD. As long as your client can be sold on it, the maximum amount of points you can charge is determined by the amount of points RFG charges. For example: if we charge two points, you would be able to charge up to two points.
- Anyone can refer and be paid for a funded loan with RFG.
- Your involvement with the process can be just an introduction and handoff, or you can be involved in the process from start to finish — it’s up to you.
- The referral process and customer approval is fast, easy and typically takes less than 24 hours from full submission of documentation. Closings typically take less than 10-14 days.
- There are multiple ways for referral partners to be paid.