Become a Real estate agent or Loan officer?

7 Replies

I have two opportunity's at hand.

Over the past month I have been working on building opportunity ( Knocking down doors)

I put myself out there like many here have recommended and it worked. My plan behind these jobs is to learn more about real estate and earn as much as possible to funnel into investment property's. I am currently a banker and my income is capped. I want something with unlimited earning potential ( I will work 15 hours a day if that's what it takes) 

Loan officer - The first opportunity is getting into the mortgage business. The gentleman is willing to mentor me. His plan would be to take me up through the ranks ( From processor, to loan officer assistant and then to a full commission loan officer. That way I become knowledgeable in all aspects. 

Real estate agent - The other opportunity is with a fast growing real estate company. The brokers were top agents and produced big numbers. They are expanding now and are looking for new agents. They are great people. The benefit here would be the ability to learn from top agents who have already been very successful. However this is straight commission vs climbing the mortgage ladder ( Which I do not mind).

If you have read this far thank you for your time. 

QUESTION?  Which one will teach me more about real estate that I can apply to investing? TWO- which one has more potential to be more lucrative ( The goal is to make as much money as possible and funnel it into rentals) 

ANY ADVICE WOULD BE GREAT.

Originally posted by @Chris Lynch:

I have two opportunity's at hand.

Over the past month I have been working on building opportunity ( Knocking down doors)

I put myself out there like many here have recommended and it worked. My plan behind these jobs is to learn more about real estate and earn as much as possible to funnel into investment property's. I am currently a banker and my income is capped. I want something with unlimited earning potential ( I will work 15 hours a day if that's what it takes) 

Loan officer - The first opportunity is getting into the mortgage business. The gentleman is willing to mentor me. His plan would be to take me up through the ranks ( From processor, to loan officer assistant and then to a full commission loan officer. That way I become knowledgeable in all aspects. 

Real estate agent - The other opportunity is with a fast growing real estate company. The brokers were top agents and produced big numbers. They are expanding now and are looking for new agents. They are great people. The benefit here would be the ability to learn from top agents who have already been very successful. However this is straight commission vs climbing the mortgage ladder ( Which I do not mind).

If you have read this far thank you for your time. 

QUESTION?  Which one will teach me more about real estate that I can apply to investing? TWO- which one has more potential to be more lucrative ( The goal is to make as much money as possible and funnel it into rentals) 

ANY ADVICE WOULD BE GREAT.

 Lol any takers?

A job will do more for you if you need income.

All real estate companies look for new agents (some more qualified and experienced than others) but that's an ongoing adventure for any broker who uses agency approach. Take care to recognize the hype. You should know a lot of people and be able to network out the gate. An agent is self employed. It is a profession with a low threshold and 10% make 90% of the money they say.

What I saw was "loan officer" I think your opportunity there is really a "mortgage originator" a loan officer is one in a lending institution that has loan authority to commit to funding a loan, mortgage originators don't really do that. This can be a low threshold entry position as well, learn to process, then how to originate, it's more of a sales job of loan programs, you're not an underwriter, but may move up to that position. On a commission basis you'll have 10 times more prospects than you would as a Realtor, you'll make about a 1/2 point on the loan amount compared to about 1.5% to 3% (could be a tad more) of the sale. Another income point is that loans are done when sales are slow in refinancing but the mortgage market fluctuates as well.

You may excel quicker as a Realtor, if you're good, getting into higher incomes as a mortgage originator take time as you're more of an captured employee.  Less free time as an originator too, you're in the office mostly and Realtor can be out most of the day.

Depends on what you want to do. I suggest you hang around both offices and test it out, meet folks and see how they like it. before you commit yourself. what you're asking is much like saying, what am I better at and what would fit my personality, needs, desires, expectations and goals. I have no idea. :) 

The difference in my opinion is...

A loan officer is an employee (although some make a lot of money) usually with weekends off, and can work from home time-to-time, and usually have health benefits...and W-2 income, so it's usually easier to get a traditional loan for an investment property.

A Realtor is a sub-contractor & owns their own business. Which just like any other business is very competitive, and you will wear a lot of different hats, and has no W-2 income (unless you start an S-corp or LLC and pay yourself a salary.)

Both have their + & -'s...I think it boils down to do you want to start your own business or do you want to have a good job in lending...which your job is probably only as good as the company you work for...and in my opinion the sky is not the limit unless you do own your own business.  Which of course is way harder than getting a job.  

I am curious as to which direction you did decide to go, and why??  And do you regret it??

@Chris Lynch I am also curious to hear what you have done with your career. I see your title says commercial agent. I have also been balancing the decision between RE agent and loan originator. My goals are the same as yours, to generate income to plow into investments. I am also attracted to a commission based pay structure.  

@Chris Lynch Can you provide an update on what path you chose to take and how you've enjoyed it/prospered since posting this 3 years ago? Very interested considering I am on the same path as you were at that time.

@Chris Lynch please provide an update. Person ally I'm taking the agent path as I am concerned Quicken Loans has brought automation to the over qualified buyer pool. Although eventually I'm looking at an NMLS license as well, but one step at a time I need my RE license first...

Both will teach you about real estate and will apply to you as an investor.

My partner did mortgage before the market crashed in 2008 and was very, very successful. After the crash, he became a Realtor and quit within a year because it wasn't as lucrative as mortgage (bad timing obviously). He's now an investor. I started as a Realtor, then an investor, and will probably never go into mortgage as I don't like working 9-5.

If you need income to funnel rentals, I'd stick with a stable non-sales job.

Ahhhhh, just noticed your original post and question is dated 3 years ago, and you're now a commercial real estate agent.

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