Question of
the Week
Q
- Hi Jeff,
I looked at your broker agreement and I have a few quick questions on how the
processing and commission works.
- I understand that if the commission is over $5,000, then you take 20%. Is the
commission considered to be the spread between the funding price and the price
to the note seller, or is the commission what's left after the expenses are
taken out?
-Is the $350 your processing fee?
-Are the closing expenses billed to us at your cost?
Thanks in advance for all your help!
~
Frank
A
-
Hi Frank!
Thanks for the email! Commission is the spread from between what we offer you
and what you offer the seller. When you use Armstrong Capital in the Master
Buyer capacity and the note is being sold to one of our private investors the
$350 is what is paid to the processor, it is not for Armstrong Capital.
If your GROSS commission (before expenses) is less than $5,000 we only deduct
$350 to pay the processor and actual expenses. If your GROSS commission (before
expenses) is more than $5,000 we deduct $350 for the processor and 20% off the
GROSS commission (before expenses) for Armstrong Capital.
Closing expenses are deducted from your commission at the actual and exact
amount that we pay.
Keep in mind that if we are buying the note for ourselves only the actual
expenses will be deducted from your commission. Hope this helps! ~ Jeff
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