Career Change: Leaning Towards Loan Origination

Career Change: Leaning Towards Loan Origination

Real Estate Agent · Hagerstown, MD · Member since 2019 · 160 posts · 121 votes

Hello BP Community!

While accumulating small multifamily through househacking, our (my wife and I) strategy requires that I maintain a W2 job for a bit longer. Since I have to keep a W2 job, I would like it to be productive towards my real estate business in some way. I'm looking for something where I get paid to help people do real estate deals, while also gaining education and experience. If I have to have W2 income, I want it to be involved with something I love and am passionate about, which has now become real estate investing.

That being said, I'm thinking about moving towards a career in loan origination. Below are some reasons that I'm leaning towards this area.

1. I love math and problem solving

     - I have a master's degree in Business Analytics, so I'm a huge math nerd. Anytime I'm looking at deals, I obsess over the           numbers and become a full analyst about them. Additionally, I love problem solving. We've had to get creative a few             times in our investing, so I love looking at all the pieces in a financial situation, and trying to put together a deal that           works for everyone.

2. I believe Financing/Funding is the meat of the deal

    - I've seen first hand how much of a difference a great lender can make in a deal. Everything from getting                              prequalifications done quickly, to clearly explaining exactly what a person needs to close a deal. The financing/funding        is where the rubber meets the road in the transaction; finding all of the best deals in the world doesn't matter if you            don't have a way to fund them.

3. Lending/Financing is where I need the most education

    - Throughout our investing so far, the part that I've been the most 'in the dark' about has been financing. Gaining                    education in this area will (I believe) help accelerate our growth and allow me to create incredible deals for other                investors.

4. I love making investing/home buying possible for others

    - So many conversations I've had recently have involved a friend saying something like 'I would love to buy a house, I just        have no idea where to get started'. Explaining the process of buying a home or purchasing a rental is life giving to me; I        love being able to give people options and open doors for them they didn't know existed.

So, what do you think? Any loan originators/officers out there, do you think I have the right idea about what it is you do and how you work with buyers? What do you think are the good/bad faces of loan origination? What am I not thinking about here?

Investors, what do you love/hate about the lending process? What experiences have you had with different lenders in your career?

Any insight is appreciated!

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Jesse CanadyPro Member
Real Estate Broker · Wilmington, NC · Member since 2017 · 51 posts · 28 votes
5y

Brandon,

Knowing how great you are with people, I think the eventual goal of being an LO would be great. However, an LOA could be a perfect position for you currently. You've got the skills for it and it is a great position to get more comfortable with the ever-evolving loan products. 

There are also plenty of administrative positions for Real Estate teams that you may want to look into. Admins are a crucial piece to the business. Agents who understand that make sure their admins are taken care of. 

- Jesse

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  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    5y

    I’m not a loan originator/officer, but I know a ton of them. From my own perspective, it’s not the ones that are good with math/numbers that are the most successful in that business. It’s the ones who are good with people and sales who really succeed.

    You didn’t mention if you’re good in those areas, or if you’d even enjoy doing sales (not everyone does and nothing wrong with it if you don’t). But I’d definitely ask yourself that before getting into that line of work.

    Just my two cents based on my own observations.  

  • Real Estate Agent · Hagerstown, MD · Member since 2019 · 160 posts · 121 votes
    5y

    @Kyle J. Thanks for your thoughts! The sales component is the only thing that I'm uncertain about. I was thinking about starting out in a LOA (loan officers assistant) role to learn the business more as they typically have salary + little commission and then eventually go into the full commission role.

    However, I love and believe I'm great with people! I enjoy getting to know people, what their goals/desires are, and how I can help them. Completely comfortable on the phone and talking to people all day.

  • Jesse CanadyPro Member
    Real Estate Broker · Wilmington, NC · Member since 2017 · 51 posts · 28 votes
    5y

    Brandon,

    Knowing how great you are with people, I think the eventual goal of being an LO would be great. However, an LOA could be a perfect position for you currently. You've got the skills for it and it is a great position to get more comfortable with the ever-evolving loan products. 

    There are also plenty of administrative positions for Real Estate teams that you may want to look into. Admins are a crucial piece to the business. Agents who understand that make sure their admins are taken care of. 

    - Jesse

  • Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    IMHO, the deal is more important than the financing;  get a great deal and the financing will chase you!

    That being said, if you need a w-2, and with your skill set, perhaps think about becoming an appraiser.  You'll learn about what property is actually worth from a lending perspective, how to adjust for improvements, and get to know your market area in a very detailed way.

    Good luck!

    PS:  You'd learn the most by becoming a realtor.  Unfortunately, that's not a w-2 business.

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