Agents or Realtors vs Lenders or Loan Officers

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Agents or Realtors vs Lenders or Loan Officers

Vashist D.
NJ (nj) · Member since 2022 · 38 posts · 1 vote

Obviously both agents and lenders have the potential to make millions, but I am confused on which to get into. I am passionate about real estate and want to get a career path which has the most potential. Both of these fields are commission based but which one will have the most income potential fastest and highest. It’s been hard for me to decide because both paths have the potential to earn 6-7 figures within 5-10 years. Any thoughts?

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Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
3y

Yes - probably a bit higher potential on the realtor side BUT way more competition and saturation, as if its easy for you to jump in and have big potential...that means its easy for everyone else too


This was an interesting article that came out today on the massive oversaturation of real estate agents out there

https://www.zerohedge.com/mark...

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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Right now where the market sits, I would get into the realtor game. Make 3% on every deal you buy and sell. Lending is great when the market is great, you can maneuver through this market as a realtor 

    1Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    3y

    Yes - probably a bit higher potential on the realtor side BUT way more competition and saturation, as if its easy for you to jump in and have big potential...that means its easy for everyone else too


    This was an interesting article that came out today on the massive oversaturation of real estate agents out there

    https://www.zerohedge.com/mark...

    [email protected]
    Harpoon Capital514 Reviews
    WebsiteView Page
    5Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Vashist D.:

    In the last seven years we've increased the number of REALTORS by almost 50%. The market was doing well so people jumped in hoping to make big money. That's going to dry up over the next couple of years and we'll see competition get tougher. There's always meat on the bone and a good hustler can make it happen in any market. Just be realistic. There's a reason why over 80% of all REALTORS quit within two years. It's cheap and easy to get started, but tough to make a living.

    Have you considered Property Management? Good managers are hard to find and in greater need every year. It's an opportunity to earn a good paycheck immediately while learning how to manage rentals and tenants, one of the weakest points for most investors. You'll see what makes a good rental vs. a bad. You'll learn to use policies and procedures, management software, forms, efficiency, and many other skills that most Landlords lack.

    The DIY Landlord Book4.7247 Reviews
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  • Vashist D.
    OP
    NJ (nj) · Member since 2022 · 38 posts · 1 vote
    3y
    Quote from @Robin Simon:

    Yes - probably a bit higher potential on the realtor side BUT way more competition and saturation, as if its easy for you to jump in and have big potential...that means its easy for everyone else too


    This was an interesting article that came out today on the massive oversaturation of real estate agents out there

    https://www.zerohedge.com/mark...


     What about lenders, is it still possible to make huge amounts after a certain point of experience. MLOs also work commission based but I don’t hear many people saying it’s a rewarding field. What does it take to become a successful lender or maybe even becoming the leader of one? A college degree? Experience? Hard work? 

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  • Vashist D.
    OP
    NJ (nj) · Member since 2022 · 38 posts · 1 vote
    3y
    Quote from @Nathan Gesner:
    Quote from @Vashist D.:

    In the last seven years we've increased the number of REALTORS by almost 50%. The market was doing well so people jumped in hoping to make big money. That's going to dry up over the next couple of years and we'll see competition get tougher. There's always meat on the bone and a good hustler can make it happen in any market. Just be realistic. There's a reason why over 80% of all REALTORS quit within two years. It's cheap and easy to get started, but tough to make a living.

    Have you considered Property Management? Good managers are hard to find and in greater need every year. It's an opportunity to earn a good paycheck immediately while learning how to manage rentals and tenants, one of the weakest points for most investors. You'll see what makes a good rental vs. a bad. You'll learn to use policies and procedures, management software, forms, efficiency, and many other skills that most Landlords lack.

    If property managers make money through a percent of the rental cash flow, then if inflation goes up, income goes up as well right? And do property managers make lots of money or is it mainly for the experience and knowledge. 
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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Vashist D.:

    As rents go up, the PM income goes up. It's in their best interest to keep the rents high.

    Property Managers stack nickels to make money. It's a lot of small charges built up over time, but it produces steady income and can be more profitable than sales.

    10% of a $1,500 rental is $150 a month. But if I manage 300 of them, it's $45,000 a month or $540,000 a year. There are expenses (employees, office, equipment, marketing, etc.) but it's still really good money.

    I earn enough in property management to put me in the top 5% of all agents in my market and my income is steady, whereas their's will fluctuate.
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  • Vashist D.
    OP
    NJ (nj) · Member since 2022 · 38 posts · 1 vote
    3y
    Quote from @Nathan Gesner:
    Quote from @Vashist D.:

    As rents go up, the PM income goes up. It's in their best interest to keep the rents high.

    Property Managers stack nickels to make money. It's a lot of small charges built up over time, but it produces steady income and can be more profitable than sales.

    10% of a $1,500 rental is $150 a month. But if I manage 300 of them, it's $45,000 a month or $540,000 a year. There are expenses (employees, office, equipment, marketing, etc.) but it's still really good money.

    I earn enough in property management to put me in the top 5% of all agents in my market and my income is steady, whereas their's will fluctuate.
    We’ll if I go on to indeed to find jobs I see commercial property managers can make up to 100k a year, and that’s managing a commercial building with many units. But if I took a step further would it be possible to manage two buildings at the same time and making 200k a year. Basically two management jobs at the same time? 
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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Vashist D.:

    I don't know many jobs that are part-time and will hire an amateur for $100,000 a year.

    A property manager can make more annually then a seasoned sales agent. The agents earning six figures usually have some life experience, above-average skills, and quite a few years under their belt.

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  • Adam Bartling
    Lender · Rosenberg, TX · Member since 2022 · 287 posts · 130 votes
    3y

    @Vashist D. Lending was my choice as I can work from anywhere.  You can still get into other real estate deals, off market, fix n flip, investing in syndications etc.   What state are you in?  FYI I am HIRING!

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  • Vashist D.
    OP
    NJ (nj) · Member since 2022 · 38 posts · 1 vote
    3y
    Quote from @Adam Bartling:

    @Vashist D. Lending was my choice as I can work from anywhere.  You can still get into other real estate deals, off market, fix n flip, investing in syndications etc.   What state are you in?  FYI I am HIRING!


     I am in nj, and I graduate in 2-3 years. I am still deciding to become an agent, lender, or property manager, but I have lots of time before making an actual choice. 

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  • Adam Bartling
    Lender · Rosenberg, TX · Member since 2022 · 287 posts · 130 votes
    3y

    @Vashist D. Lending can be part time, specifically with the fix n flip, rental loans.  Ambition and drive needed, no license or degree.

    0Reply
  • Vashist D.
    OP
    NJ (nj) · Member since 2022 · 38 posts · 1 vote
    3y
    Quote from @Adam Bartling:

    @Vashist D. Lending can be part time, specifically with the fix n flip, rental loans.  Ambition and drive needed, no license or degree.


     Sure Ill try this upcoming summer in June

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y

    You should be doing a SWOT analysis to figure which optoin better fits your skills.

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  • Katherine Blazer
    Lender · Tampa/St. Petersburg/Sarasota FL and Knoxville/Sevierville/Maryville, TN · Member since 2018 · 361 posts · 178 votes
    3y
    Quote from @Vashist D.:

    Obviously both agents and lenders have the potential to make millions, but I am confused on which to get into. I am passionate about real estate and want to get a career path which has the most potential. Both of these fields are commission based but which one will have the most income potential fastest and highest. It’s been hard for me to decide because both paths have the potential to earn 6-7 figures within 5-10 years. Any thoughts?


    I am both and realtor and licensed loan originator. I think a lot depends on what you want your life to look like and what you like doing. I work more on the lending side, both commercial, investment residential, and traditional residential in Florida.  I personally like this side of the business because it's mostly done from my laptop and frees me up to travel and work from anywhere with wifi. I also am able to time block and work on my investing. 

    If you enjoy showing houses and helping people shop, being an agent or realtor may be the better option. You can also choose between focusing on residential, or commercial inside of that bucket also. 

    You are right; there is a lot of money to be made in real estate; however, its not as easy as the tv shows make it look. It is hard work, and true wealth comes from owning real estate. 

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