Should you consider becoming a loan officer and a professional real estate investor?
Aspiring real estate investing pros frequently ask about getting a real estate sales license and becoming a Realtor. There are volumes of real estate investing education on this now and most understand the related risks and tradeoffs, but what about getting into the mortgage business while investing in real estate and flipping houses?
There are some very obvious pros of double dipping on both sides, but there are also potential cons to consider.
Most that have been in real estate investing for at least 5 minutes get that being able to act as a loan officer or mortgage broker could potentially allow them to leverage discounts on borrowing, give them extra knowledge, help to streamline and speed up the closing process as well as help them get better loan terms.
Thinking even further ahead donning the mortgage cap could also offer the ability to gain more real estate investing leads and even provide some additional side income.
Of course there are some cons to wearing these two hats simultaneously too. Many mortgage companies and lenders won’t allow loan officers to be involved in making their own loans for obvious reasons. Some lenders won’t even make loans to those in the mortgage business at all. This isn’t a place any serious real estate investing professional wants to be.
If you do decide to get into the mortgage business while also doing real estate investing, make sure to educate yourself about local and national regulations governing agents, brokers and investors. Many jurisdictions require you to clearly state your financial relationships. You should also continue to cultivate great relationships and strategic partnerships outside of the connections you make in the mortgage business. You should never solely rely on a single avenue for your investment deals.
As a real estate investor you should stay focused on investing in real estate and flipping houses and utilize mortgage opportunities as an additional resource, not as the primary tool. Master your craft and leverage others while keeping it simple, for maximum net profit, less stress and more free time.