Should I become a mortgage broker in NYC to fund my own rental deals?

Question

Thinking about getting licensed as a mortgage broker in NYC, not to build a client list, but to fund my own real estate deals more efficiently. The idea is to gain direct access to lenders, better understand the financing process, maybe cut some costs, and move faster on acquisitions. I’m already involved in rental property investing but looking to scale.

Anyone here gone this route? Worth it? What’s the reality of juggling both? Licensing hurdles, compliance headaches, ROI in time and effort? Not trying to build a brokerage business, just wondering if this is a smart move or a waste of time. Would appreciate any real insight from people who’ve done it or looked into it seriously.

Erik Estrada · Answer

Most wholesale lenders will not allow you to be the borrower and the loan officer on file. Some will allow you to have a Loan Officer under your company do the loan for you, however.

I don't see the point in you getting your license to work with direct lenders. You can do this without a license and build a relationship through volume.

As a broker you still need to build relationships with lenders to get favorable terms, process, etc.. But it will be a lot easier for you to accomplish this if you are full time brokering other investors deals. If you have a solid pipeline, you can really get your way most of the time.

Just because you have a license to broker loans, does not mean it will translate into cost savings. You still need to get your name out there, and you are better off being a full time investor and having a team to do multiple deals per year. Lender fees are nothing when you look at repairs, permits, wholesale fees, etc...

Rod Hanks · Answer

The biggest issue with getting licensed just to fund your own deals is the arm’s length rule. Most lenders require that the broker in the transaction isn’t personally tied to the property—so if you’re trying to broker your own loans, a lot of lenders just won’t allow it. That kind of takes away the main advantage you’re going for, which is direct access to financing for your own investments.

Mohammed Rahman · Answer

That’s a really interesting angle, and you’re definitely not the first investor to think about it. Here’s the real talk: getting licensed as a mortgage broker in NYC just to access better rates for your own deals sounds good in theory, but in practice, it’s probably more hassle than payoff if you’re not planning to actually run a brokerage.

The licensing process is no joke — you’ll need to go through the NYS Department of Financial Services (NYSDFS), meet education requirements, pass exams, get a surety bond, and stay on top of ongoing compliance, reporting, audits, and recordkeeping. That’s a whole extra business layer, even if you’re “just” using it for yourself. Plus, most lenders (especially institutional ones) aren’t going to give you special inside access just because you’re licensed. They work with volume brokers and established relationships, not individual investor-brokers doing a few deals a year.

Also, legally, you can’t broker loans just for yourself without still following all the compliance rules. And honestly, the cost savings probably won’t offset the time, liability, and regulatory headaches. You might get some sharper insight into the lending process, but you could also get that by partnering closely with a good broker or loan officer without taking on the full licensing burden.

If you’re serious about scaling, it might be smarter to build strong relationships with multiple brokers, private lenders, or even consider setting up a fund or line of credit, rather than trying to straddle two hats (investor + licensed broker). Unless you want to build a side income brokering loans for others, the return on time probably won’t justify it.

Patrick Roberts · Answer

If this is solely for your own deals, it's probably not worth it. It honestly might be easier just to buy into an existing brokerage and be a part-owner rather than an originator.

Should I become a mortgage broker in NYC to fund my own rental deals?

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