Considering offering loans, mortgages etc.

[AZ-Tax]

I have been considering offering mortgages, loans etc. to my practice. I would like to here from fellow tax preparers who offer these products.

[Nashville]

Does it surprise you

...since you asked from fellow practitioners who offer these products, that no one has answered?

I know several tax preparers who offer stock brokerage, and real estate, but not a soul who offers mortgages/loans. There are used car dealers and loan sharks who contract out to tax preparers and get into the RAL business. But don't know any who are in the mortgage business or "bankable" loans.

Doesn't mean there's anything wrong with it - on the contrary, it might be a good idea.

[DTS]

Mortgages

A couple years ago, I attended a seminar for EAs IndyMac was putting together, of all banks. They were enlisting the help of EAs to write loans for them and the EA would receive $1,000 for each loan.

I did not want to do this after going to the seminar. First, only $1,000. Secondly, I was uneasy about being in the middle of IM and my client.

[jimmcg]

Really not a lot to be made without a high volume of activity. Also professional liability exposure increases with a corresponding increase in premiums. Stick to what you are best at!

[erchess]

My Notion

I think I would rather find someone in my area (or several people) who are ethical and handle loans snd refer clients to them or perhaps get one to join my business.. I imagine that being able to assist people with their loans is a learned skill that takes time to develop just as does the ability to assist people with their taxes.

[lenboush]

Offerring Mortgages

I have considered this for some time but have still not come to a decision. I am leaning against it for the reasons posted above - time limitations, learning curve, and the feel that it would be better to stay closer to the field I am in.

I will share a couple of thoughts I arrived at as part of my due diligence research.

1. Stay away from a company by the name of Vertical Lend.
2. Of all the ones I research, the one at the link below appear to have the best arrangement for someone new as well as in terms of potential profit. Note that they only offer Reverse Mortgages. I started to write them off for that reason alone but upon further investigation, decided that was not such a bad thing. Strictly one person's opinion.

http://www.safunding.com/opportunity.aspx

[JohnH]

Reverse mortgages only?
I think your first instinct (to write them off) was the right one.

[Lion]

Aging Baby Boomers

Considering us aging baby boomers, reverse mortgages might be a nice little niche market to be in. If the big banks and such are slow to move in. I still don't want another product line that would take up my time with volumes of paperwork during tax season. Now, maybe a nice little ice cream business in the summer...