September 4, 2012 · 1 Comment
Should real estate investors double dip by getting mortgage broker licenses or becoming loan officers?
Many aspiring investors consider real estate sales licenses which we already know has its pros and cons but what are the pluses and minuses of getting in on lending too?
On the plus side becoming a loan officer is pretty easy. Individual states may have their own processes but it is normally very similar to getting a real estate license in terms of real estate education, testing and applying for licensing. We’ll get to some of the cons in a moment but real estate education is never a bad thing, just make sure you have invested in the most important stuff first.
If you’ve been warned that getting a real estate license can complicate being an investor and restrict activities, know that getting involved in mortgage lending brings even more risks these days. Yes, bringing in a few thousand more a deal or shaving costs to make more profit can be attractive but mortgage professionals are in the hot seat today and already have one foot in the slammer without even doing anything wrong. For most it isn’t worth it. If it is about money find some good brokers and negotiate a discount for volume of business.
As a real estate investing pro your education has taught you to leverage other people’s cash to your benefit. However, you should also be leveraging other people’s time, which may even be more important to achieving your ultimate goals. You may enjoy more control but you really don’t want the hassle of the tedious details and headaches of being a loan officer. Let someone else do the menial work for you, pay them fairly for great work and focus on what you do best – making deals and growing your business.