How hard is it to sell money?

Question

Mortgage & Lending broker experts...how hard is your job?  How hard would it be if you only did it 10-20 hours per week?  I keep getting advertisements to pay $500/month to start my own "$25,000 branch" as a commercial mortgage broker (receiving training, setup, etc.). My wife and I have been talking over adding this possibility to our "real estate bucket"...but I'm very hesitant.  I saw some limited stuff on forums about this, but really want some expert opinions on time put in versus likely commissions and whether it can complement a real estate investor or it just turns into its own stressful long-term job.  I feel like helping others close deals can only help my own investing career.  Based on the number of people that hit my in-box offering capital for deals, I'm trying to gain a better sense of the competition.  Thoughts? Experience?

Jim Froehlich · Answer

@Chris Mason - HAHAHAHAHAH!  more cold water on my face on this subject!  ...you confirmed @Jay Hinrichs with a double-dose of reality.  No way in hell I'm spending 70 hrs/week on a new career just as a way to enhance my real estate investing portfolio. I'm already at the 25-year-veteran point of my (post-college) career!  I was just looking for some experienced confirmation and you guys gave it.  Thanks for helping me save $500/month and about 87,500 hours of sweat...I won't quit my day job.

Jay Hinrichs · Answer

LOL   this is a non starter..  only one making money are the guys charging you..  Lending is a full time gig tons of competition and most real good lenders have a stable of realtors or investors in their hip pocket

Chris Mason · Answer

Plan on 70 hours/week your first year or two, or going out of business. Your pick which.

It drops down over time as you get established.

A 25 year veteran I know has a solid team in place, his Realtor and other referral partner network, lots of past clients in place, does zero marketing/outreach, is a top 1% producer.... and lives in Europe about 40 weeks out of the year. He's in town for a week or so every six weeks or so. During those weeks he's in Europe, he probably works about one hour a week. That's the end-state you look for. Unlike Realtors we don't have to drive people around looking at 20 different houses, allowing immense scaleability, as this guy shows. But you have to put in the time and work to get there, part timers need not apply.

The average LO in the 80s did 2.2 loans per month. The average LO in 2018 did 1.8 loans per month. That's pretty pathetic. Most of them should just go pick another industry. But that's all you will ever do if you start with, and only ever put in, 40 hours a week. You need to plan to put the hours in to be at least 3x the national average within 24 months, or pick another industry.

Chris Mason · Answer

And, hey, if you're in Oakland or the SF Bay Area and 70 hours/week sounds good to you, I'm down to help you out.

Jay Hinrichs · Answer

ya you will see craigslist flooded with these beginners..  LOL.  Mortgage industry can be very good but like anything it takes a lot of devotion to build up your client base plus you need to be a real expert in underwriting and knowing what a actual lender will fund.

Along with many lenders that do take on outside brokers they will require you to be NMLS licensed.. and  a Mortgage banker.. that is what I am.. you can pop on NMLS registry to check out any of us.. its a great site.. really cuts down on the BS guys out there.

but love your sense of humor MLM is about the right way to look at this ..

Jim Froehlich · Answer

@Jay Hinrichs, copy and thanks!

Jim Froehlich · Answer

@Jay Hinrichs, thanks for popping my balloon so quick! hah...I mean, at least when I tried to make millions as an *Anonymous* Distributor in '91, I was able to sell some cleaning products, diapers, and one fake Christmas tree before realizing I had joined a multi-level marketing cult!  ...back then anyone who said anything contrary to my visions was just another dream squasher...

OK...so I won't give up (or jump on) that easily...but my takeaway is full-time gig at best....and you're implying that maybe I shouldn't quit my engineering day job just yet to become an independent loan originator...good advice...

How hard is it to sell money?

How hard is it to sell money?

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