Licensed realtors/loan officers? What's better?

[alvin]

im currently a licensed realtor and im planning to switch brokers to do more investments. i realized that i would like to do more investing than traditional buying and listing for my clients. so im debating whether to become more of a loan officer and cut some time off being a realtor. i feel that after we rehab our investment properties, i can list them under my broker to keep up with production. if i get regular buyers or sellers, that's fine - but i feel my niche is towards investors.

if anyone can relate to this, please let me know if being a loan officer is better versus a realtor?

overall id probably like to be a loan officer and a investor.

thanks for listening

[Greg]

Well, I have not been an agent but I know most pay a ton out of pocket and the traditional 7% split to 3.5% then split again is not worth it especially after all the expenses you pay.

If you get in with a big multi-state lender you will have minimal if any expenses.

With your net knowledge you will capitalize on that segment of the industry.

Do you still work the ITT job though? This is not a part-time type of business. Some may allow it though. It is not suggested by me to do part-time.

You control your destiny in most cases. You can charge what you want up to a cap of course but Making 4-6% is not rare.

In CA it is though because of the lender saturation and shoppers.

Investment is perfect. Good niche. But, % of less money in some cases. Depends on where you invest of course.

Are you focusing more on flipping or retaining with the investment side?

[alvin]

hey greg,
yes im still full time in my IT job. im still in my comfort zone of steady paychecks but i feel that i have alot more potential to make more if i did mortgage and investment full time. ive learned alot with creative real estate and i need to harness my knowledge in the right direction.


the investment here in CA is good because it makes sense to do rehabs/retail with a good return. even if the market is going down or sideways, we look for properties where we can not just add value, but add square footage to the property for guaranteed profits. we are not speculators so we negotiate enough equity into our deals before acquisition. we know our exit strategy when we find the deals and id like to get better at crunching numbers. we aim for at least $50k in equity so if the market were to turn around we can sell it right away without losing too much out of our pockets.

for NOW,
rehabs/retail in CA and cashflow/residual income outside CA
also we can wholesale our deals if we dont like it

for FUTURE,
currently researching on how to do TIC companies associating commercial 1031 exchanges.

id leave the traditional buying and selling for the new realtors coming in.

[Greg]

we look for properties where we can not just add value, but add square footage to the property for guaranteed profits.

I know a work friend who's grandmother and grandfather are billionaires from doing exactly this in CA. Adding sq footage by building up a story.

Nearly doubles the value in most cases.

Keep moving with that.