Job: Mortgage broker or realtor?

[scubadude]

Im thinking about either taking the class to become a Mortgage broker or a real estate agent I was just wandering if anyone can give me any tips that would influence my decisions. Money is definately one of the deciding factors but not the only one. Im curious of hearing opinions from anyone in that is in this line of work, or who has been in this line of work

[schrocat]

Are you planning on working for an existing company or opening your own office?

[Poseidon]

Rocky, here is my take on that particular job. I would STAY AWAY! Real Estate is riding a boom time right now, and I think that is about to come to a CRASHING halt. With gas prices rising with no end in site I think we will see a move back to the city, and that will cause a large number of homes to be up for sale, with no one wanting to buy! I think it is just a matter of time before the bubble bursts! If I had to pick, I would say Mortgage Broker would be safer then an agent though!

[Ninong]

Mortgage brokerage is now consolidated nationally thanks to the internet. It's no longer a localized business. The big players are killing the small outfits. I wouldn't get into that as an individual broker at all. That sounds too much like trying to open an independent travel agency and having to compete with Expedia and all the big internet players.

Real estate in your neck of the woods is booming, as you well know. A correction is coming, probably sometime in the next two or three years -- maybe even the next two or three months. When that happens, there will be a shakeout and a drastic reduction in the number of real estate salespeople. It happens every time there's a downturn. But that's a flexible business and you can always get in and out. The hours are lousy if you have a family because the weekends are your prime time.

I have friends in California who have made an absolute killing selling real estate, especially during the past six or seven years. But I also remember back in the early 1980's (when the prime rate was pushing 20%) when the real estate salespeople were defaulting on their leased Cadillacs and brand new boats right and left. We used to say that Bank of America had the world's second largest navy. Their repo lot was full of boats along with the Cadillacs, BMWs and Mercedes. A friend of mine kept bidding $8,000 on a one-year-old boat that cost $24,000 new. The bank kept rejecting his bid as too low -- it was probably the only bid. Then finally, after three months, he got the boat. They had monthly sealed-bid auctions open to licensed dealers only. Back then, brand new homes in a new East Bay subdivision called Blackhawk, were being dumped at a loss by the builders. New homes that were selling for $480,000 were suddenly being sold for $320,000. That was in the early 1980's. Those same homes today are worth $2,000,000.

[zhenya]

Hi Rocky,

I am with George on this one. My wife is a mortgage broker and she;s been doing this for the last 20 years but she never ever thought of doing this on her own. Working for a large financial company that is involved in real estate is probably safer bet if you want to stay with financing part of the real estate.
But, the competition is pretty brutal, not just with the internet but the local banks and small mom and dad outfits too. Here in Jersey there are quite a bit of them poped up lately, they don't take away much business but they do provide a lot of competition with their redicilous rates that don't exist in the end.
It took my wife quite some time to build the reputation and clientelle but for the last 5-6 years she had made a lot of money.

I have a friend in Florida that works for the largest developer in the country, selling homes for them, and she is making quite a bit of money too. I think that may be one of the easiest options to make good money in real estate.

[scubadude]

Kewl, I new I would be able to get some good food for thought from you guys on this matter, ever since the hurricane episodes down here there has been an explosion in jobs but they are basically minimum wage jobs, and Im not after that, there are few select areas that seem to pay ok and the two I chose seem the most interesting.

Are you planning on working for an existing company or opening your own office?

If I had to pick, I would say Mortgage Broker would be safer then an agent though!

Mortgage brokerage is now consolidated nationally thanks to the internet. It's no longer a localized business. The big players are killing the small outfits. I wouldn't get into that as an individual broker at all.

Very good points by everyone these are the ones that stand out though, I definately think I would work with a large company to start and alot of these larger companies offer to send you to school but I have a feeling that I will be locked down to them for some time if I do so, and it is that reason why I think I should take the class independently and pursue my job with my own license with a large company, so I wont be committed to that company since I got licensed with them. Does that make sense? Licensing for broker or agent can be about 200-500 bux depending on who I go with. I would like to specialize and get a knack for Fannie Mae, HUD, repossesions etc etc. I would like the option of going independent eventually and some are telling me that it would be better for me to learn agent first and then broker? Any thoughts on that and do you guys see more benefit in me eventually doing both or concentrating efforts on just one?

[Poseidon]

It would be cool to do both, BUT you may run into opposition from other brokers/agents. Could you imagine the back stabbing potential of this... "He just wants you to buy ANYTHING so he can make money on the sale AND the mortgage, I on the other hand have your best interest at heart... etc etc" I know how salespeople work, since I was one of them for quite a while. I worked in "underground real estate" cemetary plots and such...

[Reefland]

"underground real estate"

Never heard of it that way.

[zhenya]

Never heard of it that way.

Well, I did. It is a real estate to be had at the premium since everybody is "dying to get in".

[schrocat]

Right now, a mortgage company is going to be able to train and place you in a sales enviro quickest. If memory serves me correctly the heavy hitters, Country Wide, Chase, Cendant(PHH) have campuses up in Jacksonville...not sure of the scene South.

Realtor exam is a bear btw.
Might as well be taking the bar, especially in Fl.

Real Estate sales can be feast or famine.
Personality, appearance, product, detailed knowledge of area, and who you know.
Mortgage sales these days merely require good products, knowledge of the products, and a non offensive phone voice.

Something else to consider, the big boys in mortgage are worked into Realty Brands which are an almost endless source of leads.

Well... until the bubble pops.

[Poseidon]

You guys are silly!

Rocky I still say go cautiously!

[scubadude]

You guys are silly!

Rocky I still say go cautiously!

Yeah Im with ya Mike I do think that Im leaning more toward the mtg broker position now, But seriously what do I have to lose? I mean really the only thing I have to lose is the cost for the license/class which is about $300 and my time....As long as it pays minimum of $8/hr for the first 6-8mos I think I will be pleased.

[zhenya]

Yeah Im with ya Mike I do think that Im leaning more toward the mtg broker position now, But seriously what do I have to lose? I mean really the only thing I have to lose is the cost for the license/class which is about $300 and my time....As long as it pays minimum of $8/hr for the first 6-8mos I think I will be pleased.

Rocky,

"What do I have to loose?" It all depends. Being a mortgage broker will take a whole mess of your time and to top it off, not all your clients will be swift in understanding what it is you are trying to sell them(believe me, it happens alot).
Running around with prospective buyers to show them properties and amswering calls if you locked someones rate may prove to be too much to handle all at once. Been there, done that.

I think being a mortgage broker is tough enough,Rocky. You can build very good network with the real estate people by sending them clients and getting some in return( they buy a house and you finance it ). The way the market is today you can make six figures hardly getting out of bed.
But, when the bubble bursts( like shrocat said), that;s when all your connections will pay off. Then it's surviving mode ( not all that bad either if you have right people remembering you).