"I think it's become an excuse for large brokerages that are losing money to say, Oh, we need the ancillaries. I love to say it looks great in the spreadsheet. Every big lender and big real estate brokerage who do a JV... they're going to make all this money because they're going to underpay the loan officers and expect the Realtors to fall in line and use them. And in reality, that doesn't happen."
"The problem is if you actually pay loan officers what they're worth, you can't make money on the joint ventures. That's why you're seeing major players like Compass and Anywhere pivot away from large-scale joint ventures."
LPT Realty's growth strategy emphasizes team empowerment and agent retention, deliberately avoiding mortgage origination joint ventures. CEO Robert Palmer, with 20 years in the mortgage industry, chose not to attach a mortgage company to LPT Realty, offering only servicing and refinances. The firm has risen to No. 7 in transaction sides, totaling 61,041. Palmer believes that joint ventures often fail in practice despite appearing profitable on spreadsheets, and he encourages agents to select their own local mortgage providers instead of competing with them.
Read at www.housingwire.com
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