How to Make $1 Million in Real Estate - Step by Step

So I'm going to tell you guys the most realistic way to make $1 million in real estate today, today's market. And I can guarantee you that the strategies and the detail that I'm going to talk about in this video, literally no one's talking about this. This video does not exist until now. So, as you probably all know, real estate is very popular. You know, just from a consumer standpoint and also from a money making standpoint. Everyone wants to get into real estate, they see these TV shows and, and ever since it came back after the crisis of 2008, real estate's just been super popular and gains momentum every year. Whether it's becoming a real estate agent, whether it's finding properties to fix and flip, whether it's buying houses. Just, you know, the act of buying houses has become a pastime for people or a hobby for people fixing houses. I mean, just look at Home Depot, Lowe's, all the things about home improvement, it's just insane, right? And then there's also a lot of people talking about making money in real estate. As far as rental properties, wholesaling of real estate, there's all types of strategies. Real estate development, it just goes on and on and on. And there's probably videos everywhere over the last five, ten years on the Internet that talk about different strategies in real estate. And it's a great way to make money still today. But let me just tell you the problem with a lot of this content. A lot of this content is talking about ways that these people got rich in real estate over the last 10 years. And a lot of the strategies, while they still can work today, they're just not as effective. Right? The market's become very saturated, prices have continued to skyrocket up. And, and so there's just been a lot of movement in the market. And a lot of the strategies that used to work five, 10 years ago, they work today, but they just don't work nearly as well. It's gonna be much more difficult to make money using those same strategies. A lot of guys that acquired a lot of property in real estate investing, or they did a lot of development, they did. So when prices were lower or when there was an ability to find distressed properties more easily, you can still find deals, you can still find distressed properties. And I talk about this on my channel, how you can get into real estate investing in even today, in 2021, 2022, going forward, but it's just a little bit more difficult. So I wanted to bring you a strategy that no one is talking about. And I can guarantee you that this would work if you lay it out. Now, here's the deal. Be sure to stick around to the end of the video because I'm gonna lay out exact numbers as far as how much money you would make from this strategy and how long it'll take to get there and all that stuff. But just stick around to the end because I'm gonna lay out all the detail today. There's this niche within real estate that I think literally nobody is talking about. It's very under the radar. There's no TV shows about it. It's not very sexy. It's actually kind of boring. But there are people that are in this industry making millions of dollars, multiples of millions of dollars every year. There's people making six figures, there's people making millions of dollars. It's very lucrative, but you have to do it the right way. And that is mortgage lending. Now, there's nothing sexy, there's nothing fun about getting a mortgage, but the majority of properties purchased today include some sort of debt. That debt is called a mortgage, AKA a home loan. The people that provide these home loans are mortgage brokers, loan officers, or mortgage lenders. Now, here's why it's better than real estate. Now, just to give you full context, I do both. I do real estate investing and I also do mortgage lending. And by far, I make the majority of my money from mortgage lending, which I then take those profits and I invest into things like real estate and other asset classes. So here's how and here's why it's so much better in real estate. If you're a real estate agent, think about how you can get a deal. You know, you have your sphere, your network of people that you know, and family, friends, colleagues, you know, all that stuff. You can expand this, doing things like we talk about on this channel, as far as social media, marketing, and different ways to grow your presence. But in the beginning, you only know a certain number of people. Now, those people can either buy a home with you or sell a home with you. And they can only do so once every so many years. So. So in the beginning, you could only do so many transactions. And it takes time to build up that database and to build this up. Now you can buy leads, you can join a team. There's all kinds of different strategies to make money in real estate, but that's not what we're gonna talk about today. Today we're talking about mortgage lending and why it's better. Now, mortgage lending allows you to do way more Transactions, you make less per deal, but you can do way more deals. Here's how. So if I'm a mortgage lender and I look out my window and I wanna see where can I get business from today? Where can I get clients? I can get clients from the same network that a real estate agent could. Friends, family network, coworkers, my sphere or my network. I can do things online just like they can, but I can also get business from B2B, and that's real estate agents. Real estate agents need responsible, good, trustworthy lenders that provide a high level of service. If you can help them with their business and actually be a business partner to them, that's even better. They're going to refer you more clients. You can also get business from home. Home builders, attorneys, CPAs, financial advisors. There's just a huge network of B2B relationships that can refer you clients, because at any point in time, those people are going to have clients that need a home loan, whether that's to buy a property, to buy an investment property, or to refinance a property. That's the other great thing about being in the mortgage industry is over the years, I've been doing this about 20 years now, rates go up and down, and when interest rates drop, all the people that had rates at higher levels will want to refinance. Doing a refinance earns you the same commission that you would earn if you were doing a loan for someone to buy a rental property or a primary property. Here's how it works. If you're in the lending industry, once you get to a level of knowledge, you can start marketing yourself as a trustworthy lender. Now, that takes a little bit of time. It takes a little bit more time than it would to be hitting the ground running in the real estate industry. So if you think about real estate agent, real estate wholesaler, real estate investor, these things, you know, you can do your research and get going and kind of fumble along the way. In mortgage lending, you kind of have to have your ducks and roll. First you have to work with somebody who's going to help you. And I'm going to get into all of that. I'm going to tell you exactly how much money lenders make, how to get into the industry, and then how long it will take you to get to the point where you're making real money. Now, before we get into all of these details, I want to tell you about something really quick. So I get a ton of messages because I talk about this stuff on social media and online. A Lot. And a lot of people in the industry ask for specific details on how to grow their business. And how I went from making, you know, zero money in the mortgage business to making six figures, to then making seven figures and then multiples of seven figures and how I did that. Right. And how I built a team and all the marketing stuff. So what I did was I started to put together a course which we're shooting right now. And that's going to kind of detail that entire journey. And what I'm going to do is, is if you're interested in doing this, see the description below. Because I'm gonna put a link to pre sell the course and I'm gonna sell it for a huge discount to what we're gonna sell it for once it's fully completed. We're about 60% complete on this. And I'm putting in all the details and all the information. So if you're interested in that, check the link below because you can buy it at a huge discount right now through the presale. So when you're thinking about getting into the mortgage business, there's three paths that you can take. Number one, you can become a loan officer at a major bank or financial institution. Number two, you can become a mortgage broker, which is either a loan officer or eventually the owner of your own mortgage brokerage, which is just a small business that brokers deals. And number three, you can become a mortgage lender, which is working for a mortgage bank. This is a company that just does mortgages, but they do them in their own name. So this is where the majority of people are at now the mortgage broker channel is growing as well. And then the traditional bank model is kind of fading as more people find their way into these other models, because that's where you make more money. So I would not get into working as a loan officer at a major bank. And here's why. They do feed you some referrals, but their business has consistently declined over years as the non bank lenders and the mortgage brokers continue to grow. So that model is viable still. You can still start there and make money, but you're really on your own as far as other deals. And on the deals that the bank feeds you, you make less money. So it's not as lucrative as it seems working at a major bank. The other problem that exists when you're working at a major bank is there's only one product line that you can sell which is your own bank's products. Now if something doesn't fit that bank's box of lending. You lose that client, they go somewhere else. So you don't really have the flexibility and the options that you do in the other two channels. And also, like I said, you're going to make less money at the bank. So I know a lot of you are probably thinking, let's get into the money. Why would I even want to do this? Doesn't really sound that fun. But let me tell you about the money, because that's what's going to make you passionate about doing all this stuff, right? So here's how mortgage people get paid. So the average loan officer can make about 1.35% of the loan amount. Now, there's different examples where you could make a little bit more, and there's different examples where you can make a little bit less. But for this purpose, let's talk about the average, which is about 1.35%. So let's take an average loan amount of $400,000. If you were to handle that transaction for that client at the end of the transaction after it closed, you would make 1.35% of $400,000. That, that works out to $5,400. That's not a lot of money, but it's still really good for just one transaction, right? The cool thing is, what if you did 10 transactions, that's $54,000 in a month. Now, that's not easy. I don't want you thinking that you can just get into this business and all of a sudden be doing 10 deals at 50 $400 a clip. But it is very realistic. Now, if you're thinking about real estate, do you think that in the real estate industry that you could be thinking about doing 10 deals in a month? Now, I know real estate agents make 2 to 3% a transaction, whereas mortgage lenders are only going to make 1.35% per transaction. It's still more possible to get a lot of transactions. And when you think about any business idea, you always have to think about this. Most people don't think this far ahead. They think about short term and they think, oh, real estate, I'm going to make 2 to 3% a deal. Why would I want to do mortgage lending where you can only make 1.3% deal? Here's the problem. You can only do so many deals in the beginning. As a real estate agent, yes, you could build a team, yes, you could scale and eventually get to the point. But it's going to take time. And most people, frankly, do not get there. In real estate, the failure rate is extremely high in real estate. Failure rate is equally high in mortgage lending. But here's the caveat. So you might be thinking, well, in real estate, I'm going to make 2 to 3% per transaction. Mortgage lending, I'm only going to make 1%. So most people, when they think about things in terms of making money, they think in the short term. And here's the issue, right? As a real estate agent, yes, short term you're going to make more money per one deal. You can make 2 to 3% per transaction. Or if you're a flipper, you could make $50,000 on your flips. Or if you are a wholesaler, yes, you can make 10, 20, $50,000 on a wholesaling transaction. The problem is it's going to be very difficult to scale that business. Yes, there are people who built a team and scaled their business in all types of real estate. But, but the failure rate is very, very high. So only the elite people are making it to the million dollar level. In real estate it's very possible if you work hard and if you have the right information. But it's not easy and it's not as practical as mortgage lending to get to a million dollars. Now here's why. Mortgage lending, as we talked about earlier, you can do a lot more deals while you make less per deal, 1.3% it's going to be able to translate to more dollars because you can do way more deals and, and you can source those deals from a number of places. So let's do that math again. If you want to get to this 10 deals and you're making $54,000 a month, which is just crazy good money. Right now you're at $640,000 a year, which is just amazing. That puts you in the top 1% of American earners. So that's pretty amazing to be able to get there and actually have it be realistic. I know many people within the mortgage industry who are making over $500,000. Now that's not to say it's easy. And I know a lot of people who are making, you know, under six figures or just above six figures in mortgage lending. But I just want to reiterate that it's actually practical to get to there if you do the right steps. Now let's look at what it would take to make a million dollars a year as a mortgage originator. Now, if you use that average deal size and average commission per one transaction, it would take you approximately 185 deals to get to the point where You've made a million dollars a year. What's 185 deals? That's 15 deals a month. So 15 deals a month is no small feat. It would take definitely some great business partners, some great networking, some great marketing to get to that level, but it is doable. So the point of this video was to say, hey, if you're thinking about a career in real estate, look at mortgages. Because no one's talking about this. And I think a lot of people in the mortgage industry don't want people to know about this. It's a group of old men and women who just kind of want to keep this under wraps. Nobody ever talks about how much mortgage people make. Nobody talks about, you know, all the millionaires that were within the mortgage industry. You're just now starting to see this come to the forefront as many mortgage companies have become public companies and they're talking about the billions and billions of dollars that they've made. Now, a lot of this is due to the low interest rate environment, the cheap money that's available today. But I know people, and I personally was making a lot of money in mortgages even before interest rates fell because of the same strategies where you can have all these different sources of business. I had a conversation with a guy recently and we talked about having traps out there. And if you think about being a hunter, you know, you're setting traps so that way you can catch food, right? And if you don't have enough traps out there, you're not gonna eat, you're gonna starve. Now, as a mortgage lender, you have the ability to set so many traps out there to get business from it, right? So. So if you do this right, at a certain point in your career, you can have hundreds, if not thousands of traps that exist everywhere. Business partners, relationships, marketing online, creating content online, creating leads online through your business development activities. There's just so many different ways to get business. And at any point in time you're going to have leads coming in or inquiries coming in, and then at a certain point there'll be too much that you won't even be able to handle it all. And that's when you build a team. The other cool thing about mortgage lending is it also allows you to create some passive income, which is when you build a team. And how you do that is once you get your business to a certain level, you hire people, you build your systems, and then at a certain point, you can recruit other mortgage loan officers to work with you on a team and you can earn A little bit of money off of their closed transactions as well. So that allows you to a make money from your own business activities, but then have people closing transactions within your team and you making money off those transactions as well. So it scales up and you can grow this thing as big as you want, really. So, so here's how to become a mortgage loan officer. Number one, you have to take a 20 hour online course, plus any state required courses that are required for your state and the states that you want to get licensed in. Now if you're going to be working in multiple states, I would definitely suggest being licensed in more than one market because this is another huge advantage over real estate is that as a mortgage lender you can be licensed in multiple markets. So we're licensed in 16 states. That means that I can serve clients in all those states. Now you might say, well, what if they want to come in? The majority of people do not want to come sit down with the mortgage lender. They apply online, they do things over the phone, you do presentations through Zoom. Everything's done with email and online and portals and all this stuff. So you really don't have to have a physical presence in there. It definitely helps. And people do prefer having a local mortgage lender. But you can also serve clients in other markets very easily and that's becoming more and more acceptable as we go forward. As a real estate agent, you, you can really only serve the people in your community. If you have people in other markets, you can refer them out to other people. So after you complete the 20 hour online course and any state required courses, then you have to pass a test. This is the national licensing test and from what I understand, most people pass it within two attempts. I didn't find it that difficult, but most of my staff here either passed it on the first try or pass on the second try. You know, it's actually a lot of memorization. The information that's on the courses and in the test is really not going to help you on the job. It's more of just a hoop you have to jump through for the government. You know, they want to check the box that you've done your due diligence to get into this industry. So it's more, you know, just a lot of memorization, rules and regulations, laws, different things like that. About 20% of it, I would say is actually practical information for the industry. But the majority of the information you're going to need to do this job will come next after you get the license. So once you pass the test you can apply for the license, you need a company to sponsor you, so you can reach out to a mentor that you trust, you can reach out to a company and you can actually apply for a job there or somebody that works there already, that you have a relationship can bring you in. And then now they sponsored you, so now you can get your license issued. After your license is issued, now the real work begins. You have to learn this business, which is learning all the loan products, learning, learning all the different systems on how to push loans through, how to qualify clients, how to make sure that you're doing the right thing by clients, how to inform them, and all these different things. Now at a basic level, it's just math and calculations, but at a more advanced level, it's a lot of different things that you have to figure out. And it really just comes with experience. We have a comprehensive program that we put people through for about a month and then even then they still have a ton of questions. So you really have to work with a mentor, work with a team to teach you all of these things. And that's how I got into this business. And that's how everybody that works here got into this business. They worked with somebody who took the time to educate them. Now this first year that you get into this business, you're not gonna all of a sudden make a million dollars. That's not how this works. But here's what you can do. You can make some real money when you get into this business if you're doing the right things and if you're working hard, right? So if you're working with the right people and, and you're doing the right activities on a daily basis, putting in that work, you're going to make consistently six figures. Now here's what happens next. After you started making six figures, then you can implement step two, which is leveling up your marketing, building up your systems, your team, and doing all the activities that are gonna get you to this million dollar goal. But this is realistically possible within two years, year one plus year two, if you fast track this. Now, I've seen people do it in five years. I've seen people do it two, three years. But some people, it can take a decade. It just really depends on how quickly you implement everything and how hard you work in the beginning. Now in this business, there's going to be ups and downs. There's going to be years when you can have an opportunity to make a lot of money. There's going to be years when there's less business and it's going to be harder to get that business. But in any climate, there's going to be an opportunity to get a lot of business and, and to diversify the places from which you're getting your business from. So if you're thinking about getting into this business, here's another thing that you should think about. Average age of a mortgage loan originator is about 50 years old. So it's really these older guys and gals who are in this business who are kind of just protecting their own business. They really don't bring people in. It's very rare that you bring in a lot of young people into this business. It happens, but it's happening at a very slow pace. So most young people, when they think about this, they think about getting into real estate, like I said earlier, because it's more out there, it's more sexy, it's more talked about. No one really thinks about the mortgage side. And now what you're really finding is a need for younger people who are innovative, who can provide a better message, who are better communicators, who can do different things to serve the clients that are coming up and buying real estate, and who need home loans and who need services. Right. These older guys aren't necessarily doing that at the level that it needs to be done. And the void is being filled. These are now billion dollar companies that are originating mortgages online and trying to get into the local markets. Now the disadvantage that these huge online companies have is they really don't have local expert loan originators in these markets. They operate from a big call center perspective and they don't really have these guys and gals who are on the ground in the markets. And that's where your advantage can be, because you can build better relationships as a local expert and you can also put out a lot of custom marketing that speaks directly to the people who would need your services. So when you start answering questions, when you start providing a higher level of service, and when you can do this in an innovative way, you're gonna get way more business and you can actually compete with these huge companies and these older guys that are at the tail end of their career, they're not necessarily gonna innovate at the level that you can if you're coming into this business with a fresh set of eyes. So just something to consider, if you're thinking about a career in real estate, definitely look into the mortgage side, because I know a lot of people who are making a lot of money and it's definitely a more doable way to get to that seven figure goal that I know so many of us have when we're thinking about real estate. So I'm going to detail a lot of the strategies that you can use as either a real estate agent or as a mortgage lender to really get from six figures to seven figures. And I'm putting that into that course that I talked about earlier today. So if you're interested in in that, definitely check it out below because I'm pre selling it at a super discount right now because we're only about 60% of the way through it. But I'm putting everything into this as far as mistakes I made, all the strategies that I used and really want to put that information out there to kind of help people who want to get into this business and thrive. And I'm also going to be putting out a lot of free content here on YouTube, so be sure to subscribe because I'm going to outline different strategies that I use to get more business and then also how to invest those profits and make the highest returns in the best way for you. So stay tuned for that and I will see you guys on the next video.