How brokers who educate, not just transact, can set themselves apart
Real estate investors don’t approach mortgages the way typical homebuyers do. For investor-minded borrowers, financing is a strategic lever, not just a step in the homebuying process.
“Investors look at a mortgage as a series of business decisions,” said Andy Gagliano, Alabama-based mortgage broker-owner of Gagliano Mortgage Inc . “They want to know [whether they can] make money with this property, even after financing costs?”
While traditional owner-occupants are often influenced by emotion or popular financial advice, investors take a pragmatic view. According to Gagliano, this includes assessing rent potential, cash flow, and long-term appreciation, not just the rate or monthly payment.
The myth of 'bad debt'
Gagliano points to a widespread misunderstanding among owner-occupiers - the belief that all debt is inherently bad.
“Many buyers have been brainwashed by online gurus into thinking the only good house is a paid-off house,” he said. “But mortgage debt, used strategically, can build significant wealth.”
He cites the pandemic as a clear example. Despite historically low interest rates, many buyers paid cash, missing the opportunity to leverage cheap borrowing costs. “If they had instead invested that cash and financed the home, they’d be sitting on much more wealth today,” he said.
Investors, he added, rarely make that mistake. They understand how to use financing as a tool rather than seeing it as a burden.
Misconceptions and missed opportunities
Beyond rate shopping, Gagliano often sees owner-occupants overlook important context, like how long they plan to hold a property.
“If you're only going to live somewhere for a few years, it rarely makes sense to pay high closing costs for a lower rate,” he said. “A seasoned investor knows that. They think in terms of return on investment, not just payment size.”
This underscores a key opportunity for mortgage brokers: to guide clients toward smarter financial decisions, especially those new to property investing.
The educator advantage
Gagliano believes the best brokers do more than close deals - they teach. “A dealmaker takes an order. An educator asks questions,” he said.
Instead of simply quoting a rate, an educator explores the client's goals. For instance, rather than financing one rental with a 30% down payment, a broker might recommend splitting that capital across three properties using DSCR loans. “That’s how you accelerate portfolio growth,” he said.
To stand out, brokers must show clients they understand investment strategy, not just mortgage products. “There are a lot of brokerages hiring more loan officers instead of better ones,” he said. “Investors want a partner who gets it.”
Back to basics: relationships and trust
Gagliano doesn’t believe innovation lies in flashy tech. Instead, he advocates for a return to basics by building relationships, educating referral partners, and staying active in investor communities.
“Investors love networking,” he said. “And local real estate groups are always looking for guest speakers. It’s an old-school approach that still works.”
Social media has its place, but face-to-face interaction builds trust faster. “If you educate someone, you build trust exponentially,” he said.
Ultimately, brokers who make themselves indispensable to investor clients will thrive. “It’s not about closing one deal,” Gagliano said. “It’s about managing the whole pond and becoming the person they turn to again and again.”
