Dual Licensing Real Estate & Loan Officer
Member since 2021 · 12 posts · 1 vote
Dual Licensing Real Estate & Loan Officer
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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
4yEvery single person I know that does this does significantly less business than if they'd just focus on one thing. Trying to be the jack of all trades is a great way to be the master of none.
The personality traits that would tend to make you good at one tend to make you bad at the other, to boot. Someone passionate with a high emotional intelligence will on average be a better realtor, for example, but those same things will make them a poor loan officer. That's merely one example.
Husband/wife teams are the exception, since often one of the two spouses is already the yin/yang to the other, so assuming they do not get the roles backwards (both need to have attention to detail, the analytical person does the mortgages, the high emotional intelligence person is the realtor), that can totally work.
The dual licensing thing isn't an "if" for me. I actually have my real estate license (example #152,111 of "California has silly regulations"). But I do exactly zero realtor things, even though I already have all the licensing in place to do it if I wanted to, and said real estate license is in fact already hung with a duly insured (etc) California real estate broker-owner. And yet I do zero realtor things, don't even have (or want) MLS access.
Also, more pragmatically, no one refers business to their competitor. If you go doing realtor stuff, no realtor is going to refer you mortgage business, no matter how good you are, because there are 100 other loan officers out there that they do NOT have to worry about stealing their clients, either on the front end, or in 7 years when they go to list. Similarly, there's a 0.000% chance I'm referring a buyer to a realtor that also dabbles in mortgage stuff. No matter what redeeming qualities they have, there's another realtor out there with those same qualities who isn't trying to swim in my swimming pool.
It's overall a great way to simply guarantee mediocrity as your best-case outcome.
Now, if you REALY want a laugh, go talk to someone doing insurance, financial advising, realtor stuff, mortgage stuff, and dog walking to boot.
10 Replies
- Member since 2020 · 2 posts · 0 votes4y
Being the Agent and Lender on an FHA loan would be an issue. Conventional loans it's not a problem.
- Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes4y
Every single person I know that does this does significantly less business than if they'd just focus on one thing. Trying to be the jack of all trades is a great way to be the master of none.
The personality traits that would tend to make you good at one tend to make you bad at the other, to boot. Someone passionate with a high emotional intelligence will on average be a better realtor, for example, but those same things will make them a poor loan officer. That's merely one example.
Husband/wife teams are the exception, since often one of the two spouses is already the yin/yang to the other, so assuming they do not get the roles backwards (both need to have attention to detail, the analytical person does the mortgages, the high emotional intelligence person is the realtor), that can totally work.
The dual licensing thing isn't an "if" for me. I actually have my real estate license (example #152,111 of "California has silly regulations"). But I do exactly zero realtor things, even though I already have all the licensing in place to do it if I wanted to, and said real estate license is in fact already hung with a duly insured (etc) California real estate broker-owner. And yet I do zero realtor things, don't even have (or want) MLS access.
Also, more pragmatically, no one refers business to their competitor. If you go doing realtor stuff, no realtor is going to refer you mortgage business, no matter how good you are, because there are 100 other loan officers out there that they do NOT have to worry about stealing their clients, either on the front end, or in 7 years when they go to list. Similarly, there's a 0.000% chance I'm referring a buyer to a realtor that also dabbles in mortgage stuff. No matter what redeeming qualities they have, there's another realtor out there with those same qualities who isn't trying to swim in my swimming pool.
It's overall a great way to simply guarantee mediocrity as your best-case outcome.
Now, if you REALY want a laugh, go talk to someone doing insurance, financial advising, realtor stuff, mortgage stuff, and dog walking to boot.
- Lender · Long Beach, CA · Member since 2013 · 496 posts · 296 votes4y
I have both, and I love it. You cannot be the loan officer and agent on FHA, but any other loan you can.
And buyers love it. They only have one point of contact.
- Rental Property Investor · Inlet Beach, FL · Member since 2018 · 199 posts · 111 votes4y
@Rob Carmody
Why do you want to do both?
Just for more commission?
You mentioned friends and family... are you being an Agent/MLO for their advantage? If so, then why would more commission matter?
You might consider picking one route and getting really good at that. The "extra" commission for doing both roles would be insignificant if you just focused on one role and generated more business.
Be an agent with good relationships with lenders or be a good MLO with good relationships with agents.
- Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes4y
@Chris Mason, Absolutely agree on the income/referral possibilities. Its almost the same thing with "companies" that contain both a real estate brokerage and lending. Maybe the "all-inclusive" experience business model will work, but I doubt it right now.
@Rob Carmody Also, check if its legal in your State. In some its not or very grey. I know several agents and lenders that are dual licensed (for a variety of reasons), but can't have both licenses active simultaneously. Good luck.
- Member since 2021 · 12 posts · 1 vote4y
Thank you all for your replies.
I am mostly interested in this for my personal real estate transactions, i.e. if I am going to buy a $500K condo every year for a Buy & Hold purpose, I can get $10K-ish back from my real estate license, and why not try and get another $5-10K back from being a loan officer as well. Additionally, I do 2-3 BRRRR transactions per year that I'd like to see these returns from as well. For each of these transactions, I'd be doing a conventional loan at 5% down payment.
Currently, I am NOT trying to build a list of clients as real estate is a side hustle for me.
- 4yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Rob Carmody:
Thank you all for your replies.
I am mostly interested in this for my personal real estate transactions, i.e. if I am going to buy a $500K condo every year for a Buy & Hold purpose, I can get $10K-ish back from my real estate license, and why not try and get another $5-10K back from being a loan officer as well. Additionally, I do 2-3 BRRRR transactions per year that I'd like to see these returns from as well. For each of these transactions, I'd be doing a conventional loan at 5% down payment.
Currently, I am NOT trying to build a list of clients as real estate is a side hustle for me.
I wonder if you can do your own loans and get paid. ???
- Member since 2021 · 12 posts · 1 vote4y
Quote from @Jay Hinrichs:
Quote from @Rob Carmody:
Thank you all for your replies.
I am mostly interested in this for my personal real estate transactions, i.e. if I am going to buy a $500K condo every year for a Buy & Hold purpose, I can get $10K-ish back from my real estate license, and why not try and get another $5-10K back from being a loan officer as well. Additionally, I do 2-3 BRRRR transactions per year that I'd like to see these returns from as well. For each of these transactions, I'd be doing a conventional loan at 5% down payment.
Currently, I am NOT trying to build a list of clients as real estate is a side hustle for me.
I wonder if you can do your own loans and get paid. ???
I'd imagine it's less about getting paid and more about saving on not paying someone? That's part of what I am trying to figure out here!
- 4yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
@Rob Carmody Are you going to be a contractor as well? It's hard to pay commissions, but it is even harder to lose a deal to just save money.
LuxePrivate Investments LLC 572 Reviews - Member since 2019 · 7k+ posts · 4k+ votes4y
Quote from @Rob Carmody:
Thank you all for your replies.
I am mostly interested in this for my personal real estate transactions, i.e. if I am going to buy a $500K condo every year for a Buy & Hold purpose, I can get $10K-ish back from my real estate license, and why not try and get another $5-10K back from being a loan officer as well. Additionally, I do 2-3 BRRRR transactions per year that I'd like to see these returns from as well. For each of these transactions, I'd be doing a conventional loan at 5% down payment.
Currently, I am NOT trying to build a list of clients as real estate is a side hustle for me.
When selling you can have a seller agent to have 1% commision only.
When buying you can ask the seller agent to be your buyer agent and split back that commission back to you.
To save $5000 it's not worthed to have all of those licenses.
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