Good evening BP community.
I was recently informed that I should get my broker license along with my real estate license to help with my investing. Outside of the obvious learning the laws parts, is there any other reason to get a license? I don't personally know of any way to write mortgage loans without vast personal wealth or working for a bank. Is there something I am missing, or is it just as he said, "To learn the ins and outs of a loan, and why it may be taking so long to get one at some point."
If you have any advice or personal experience with these things, please DM me or reply so I can get a better understanding of what I am going to be getting myself into.
I'm going to take it that this post is in the wrong thread. I will search others and see if something was posted or I find a better fit for a response.
What you described is a mortgage loan originator license, not an underwriting credential.
I can't really see any advantage. None of the pre-licensing education or testing includes anything about non-owner occupied, that's 100% OJT. The pre-licensing education and testing basically covers vanilla W2 owner occ SFR type loans, basic law stuff like "don't be sexist," and "what is a mortgage."
A new LO spends about the first 6-12 months un-learning all the incorrect info that she or he had to memorize to pass the test, that's why people get jammed up when they go with a call center for their mortgage, the last time I looked up the license of a "Senior Mortgage Adviser" at one of those places, they'd been licensed a whopping 4 months. Quick example, the right answer for the test is "36% DTI is max," IRL over half of my production is loans over 36% DTI. The 36% number is something you'd un-learn and re-learn on day 1, and then you've got another 6-12 months of other stuff just like that afterwards, maybe on month 9 you learn that an owner occupied duplex has rental income that you can "count" as income at 75% of value (yup, a lot of biggerpockets members know more about mortgage loans than new loan officers, that's 100% true). If all you did was get your NMLS MLO license you would benefit from all the incorrect information, but wouldn't have that OJT to un-learn bad info and re-learn good info, potentially making you worse off than if you didn't get that license at all.
Real estate agent, same basic thing. I used to wonder why it was that newer California Realtors asked questions that even a typical first time homebuyer knows the answer to, then I had to get my real estate agent license, and the answer is that they had to memorize a bunch of factually incorrect information to pass the test (your state may be different, idk). Queue the newly minted real estate agent, not even able to fill out a purchase contract correctly, because if they knew how to do that, they'd have failed the test!
Thank you for the response. It makes sense. School making you aware of some things, but the real world being much different.