Hello,

I am a real estate broker with a friend who has money and time to invest. I am thinking a mortgage company may be a good investment with the potential of the real estate market fairly active in my area and the several mortgage companies who have left 6 months to a year ago.

In the event I and my friend consider starting up a mortgage company what would you, the experienced mortgage people, give for advice?

Our area is flourishing with investors and first time home buyers. I am not totally sure what the loan mod future holds, but there are a ton of sub prime loans out there as well as people who took interest only loans that may be potential clients.

Any comments, good or bad, is very appreciated!

I think wholesale brokers are dropping like flies for a reason. Lenders have cut loan margin in half. There is very little profit to be made and unless you plan to hire on a dozen or more loan officers.

I would not suggest doing it right now.

Thanks Greg. After thinking about it, I think I may consider doing something else. On to the next idea... =)

Open a title company.

That isnt a bad idea. There are more and more closing their doors here and combining with other title companies. But still too many to compete with. But is something to keep an eye on in the future.

I am working towards providing insurance services at some point in the next year or two. I have my insurance licenses but havent really put them to use as of yet. But it is a service/business that doesn't have high start up costs.