Just recieved my license last month and would like to start doing loans. I have been doing real estate the past 3 years. I have somehwhat experience with loans, but want some advice from anyone nice enough to share. What are the steps I need to take? I have a few friends who have been doing loans for years and they plan to join with me. Want to see if I can get more info here. Here are the steps I plan on taking and please feel free to give advice or help.
#1) sign up with banks-Is there a list I can get?
#2) origination software. point, etc.-Whats the best?
#3) credit, title, pulling service. -Service of choice?

I am not trying to be harsh, but you should not just recklessly start doing loans. You should have some type of formal training before going out and taking care of the financing for someone's home! Just because you have been selling real estate for 3 years does not mean that you know how to put a loan together or you know what a buyer needs to qualify. You should go work for an established mortgage broker/banker who will train you.

Seriously, that seems a little reckless to me also. Maybe there is something we don't know, but on the face of it this seems like a crazy endevour.

California Sunset:
If you plan on pursuing loan brokerage and you line yourself up with the experienced friends you mentioned, having an experienced processor on your team should help you out tremendously in expanding your knowledge. As you already know, your originator friends must be licensed with DRE.

If cash flow prohibits hiring a processor right now, ask area loan brokers if they can recommend an efficient contract processor with FHA/VA experience.

Because financial times are difficult right now and loans more difficult to package and get funded, I cannot think of a better time to learn the hard way and get seasoned. We all had to learn what we are doing by creeping before we can walk.

Contact your local lenders and ask for a website or e-mail contact of their wholesale divisions. You will be sent broker packages to be completed and approved before lenders will allow you to submit loans for approval. You will also need to purchase your loan processing software such as Calyx.

There are quite a few wholesale lenders who have closed up shop according to the list on http://www.ml-implode.com, however, there are still a good number around still wholesaling loans, but getting picker and picker and with constantly changing guidelines. You will have to muster up a lot of patience on a daily basis.

Sign up on brokeroutpost.com and post your questions there for wholesale lenders to contact you and double check to make sure they are wholesalers and not middlemen loan brokers masquerading as wholesalers in order to get a slice of the commission pie.

Success will not happen overnight, but just be persistent and maintain the best customer service for your clients as there is no substitute for the referrals you will receive from satisfied clients.

Good Luck and Certainly have a Prosperous New Year.

CalifDreaming thanks so much for your answer as opposed to the previous 2. Anywho, I have signed up with banks, I have taken some training courses in originating loans and networking with my friends who are also helping me, I am ready to go! Once again thanks so much, God bless.

California Sunset

Don't listen to the people on her who say "work for someone else first."

I got my broker license six years ago at the height of the refinance boom. I was not a real estate agent prior to me getting my broker license. I have a law degree so was qualified to go straight to broker. At first I was scared to do loans because I didn't have the experience; but I was more terrified of working for others who would take a substantial cut of my commission.

I called the DRE and learned that I was the broker and that as far as the State of California was concerned I could open up shop and run my own business and that is what I have done. The DRE said you may not have the experience, but you have the knowledge required to open up shop and I went with it.

I affiliated myself with a contract loan processor, signed up with lenders, affiliated with escrow/title companies and my first year I was honest with everyone. I told them I was a new broker and had no experience, but smart and intelligent and I needed them to help me get these loans done.

I started out with friends as clients, gave them a break on the cost of the loan and this approach worked for me. Processor was getting paid, escrow/title was getting paid and the A/E at the lender was getting paid. I think my honesty upfront is what saved me because I was not afraid to say "I don't know, can you help me or explain that to me." I don't recall ever having anyone not willing to help me.

Today I do my own processing but my business has shifted as I specialized in subprime loans a few years ago. I still love doing loans but today I do reo listings; now I am a reo broker and still do loans every once in a while because of the way the loan market has shifted.

I have found that this real estate business has people with varying intelligence and skill levels and everyone else has opinions about what someone can and cannot do based upon what they did to succeed or failure. I have not listened to the masses.

I say Jump out there and see what you can do. The loan market today is different than what it was six years ago when everyone was refinancing so there were willing homeowners everywhere; that is not the story today.

If I was starting out In today's market I would probably do loans and real estate like I am doing now and forget those people who say choose one side of the business. You know it is funny - I bet those people who chose one side aren't working today because they didn't have the skill level, competence or flexibility to roll with the market. 2006 was the most financially horrific year for me; but I reinvented myself and made a decent living in 2007 and am optimistic about 2008.

Do your own thing!!

Good luck.

Sunset remember you're in California. If you can make it here you can go anywhere else in this country and probably anywhere else in the world being heads and shoulders above most in whatever market you move into.

Youve already done the heavy lifting. Passing the broke exam here was probably the hardest part. Finding business is your next hurdle. The mechanics of cranking out the loans isn't an issue. Push comes to shove to close the deal you can pay someone to do what you can't do until you learn. Remember you're not a worker, you own. You take all the risks and you take all the money off the table leaving no cash for those less willing or less able to do what you've proven you're capable of achieving.

papa lou and Bay area I appreciate your encouragement and wish you both unlimited success. I believe that the more you share the more you gain and hope both of you gain much this year and for years to come. I already got the ball rolling as I started this post a few weeks back.

I didn't do anything my friend. You've already done the heavy lifting. The rest is fairly straight forward. Just keep your head up and do what you're doing. There will be good days and bad but you know this to be true. Your boss will never lay you off. He will never ask you to do more than he would do himself. That boss of yours is a smart sumbytch and just needs to breath and relax. Hang in there. In less than 3 years you'll be much more solid financially than most folks you'll ever meet from this day forth. PM me if I can help in any way.