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Stratton Equities

How To Become A Mortgage Loan Officer

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Submitted by Stratton Equities

One of the best jobs you can go for these days if you want to work hard, make a lot of money, and change the world around you is to become a mortgage loan officer. There are so many opportunities out there in the real estate world to make a living, but one of the most fulfilling and lucrative is to become a mortgage loan officer for a private money lending firm.

But what are the steps you will have to take to even become a loan officer?

Like most careers that deal with highly valuable assets and specified levels of management and service, to become a loan officer, you need to get your license. The NMLS, or Nationwide Mortgage Licensing System, offers a variety of mortgage licenses but the one in particular that applies to loan officers most is the Mortgage Loan Originator (MLO) license.

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How to get licensed as a Mortgage Loan Officer/Originator

Getting an NMLS license will certify that as a loan officer, you are now able to legally serve as a mortgage loan originator. Additionally, it informs your prospective clients and employers, that you are knowledgeable of all the laws and regulations that come with mortgage lending.

More specifically, obtaining an NMLS license means that you have completed a class that teaches you all the requirements for serving as a mortgage loan officer, and that you have passed the SAFE Mortgage Loan Originator Test.

You must complete both tasks to be properly qualified to apply for the NMLS license. Once you have your NMLS license, you can easily apply for most private lending and conventional mortgage lender positions.

Although the Nationwide Mortgage Licensing System (NMLS) License covers across the country, you will still need to apply for an individual license per state you are looking to lend in.

Applying to Become a Mortgage Loan Officer with a Private Lender

Believe it or not, the next step in becoming a mortgage loan officer is finding a position at a private lending firm that suits your needs and interests. The NMLS license qualifies loan officers for all private lending and conventional lending mortgage companies. This will allow you to apply for all loan officer positions, however, you will still need the individual license per state.

After applying at your desired location, the interview process shouldn’t be too surprising or different from any other high-level interview process as they will mainly ask you questions and test you on your skillset, knowledge, and ambitions.

Once you’ve secured the position, the best private lending firms will provide thorough training, management, and support.

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Working at a Private Lending Mortgage Company

Through training new loan officers, a private lender prepares their sales team to help guide them to mastering some of the nuances required as a loan officer, that cannot be taught purely through an academic mindset.

You must be ready and focused as a loan officer and this level of training throughout the first few months of the job will help get you to that point.

As important as it is to get certified by the NMLS, there is only so much you can learn by studying laws, memorizing loan options, and practicing unique scenarios. The real test of grit is to see how well you work in a real-world setting.

To be successful as a loan officer you need to be sharp-minded at all hours, diligent in the details, dedicated to working hard, and affirmative in your tone, actions, and decisions. Furthermore, be intuitive enough to understand what is a good deal and how to thread the needle if plans don’t go as expected.

The work will be hard but the rewards are great. On average a mortgage loan officer at a private lending mortgage company can make an average of $150,000-$250,000 a year.

Securing Your Position as a Mortgage Loan Officer

To secure your career as a successful loan officer at a private lending institution, there are a couple more things you can do to ensure your success.

Firstly, there is the option to get certified by the Mortgage Bankers Association (MBA) and/or the American Bankers Association (ABA). This step is optional and not required for the position of loan officer, but getting this certificate can help boost your credentials, entice more clients to come your way, acquire yourself more deals and negotiations from borrowers, and specialize your skill set such that you are even more knowledgeable and prepared as a loan officer.

Lastly, you must renew your NMLS license every year. This is to ensure that whoever is still practicing they are aware of certain changes in the law, whether it be on the nationwide level or statewide. Additionally, renewing your license frequently keeps you fresh and sharp-minded as you are regularly checked on how well and how prepared you are at the job.

These are all the principal steps one takes when seeking to become a loan officer. The process is fairly intuitive for this type of position while also being thoroughly detailed in ensuring that only the best and most prepared are the ones handling multi-million dollar real estate investment deals.

Become a Mortgage Loan Officer/Originator with Stratton Equities! We’re Hiring!

If you are a licensed Mortgage Loan Originator that is new to the industry and is having a difficult time finding business, we have the solution.

Stratton Equities provides our loan officers with daily direct organic leads, that are from people that call into or apply to our offices looking for a mortgage. Not the other way around. We have a time-tested model that includes a state-of-the-art CRM and lead generation, amazing hands-on training, and the widest range of mortgage loan programs in the industry.

We have niche products that specialize in different types of loans such as Hard Money, No-DOC Loans, Soft Money Loan Programs, Non-QM Loans, Conventional, Fix & Flip, Commercial and more.

Benefits of working with Stratton Equities:

Direct Organic Leads
Hands-on Training & Support
Largest library of niche loan products – say “YES!” more!

Pay: $158,086.00 – $294,677.00 per year
Benefits: 401(k), Dental insurance, Health insurance, Vision insurance

For more information on how to get started as a loan officer, visit Stratton Equities today. We offer the largest variety of loan options that can all be directly accessed by our borrowers. Our starting interest rate is the lowest out of any private money lender, and you can get your loan approved in as little as 24-48 hours.

Additionally, our average time frame in closing loans for our new loan officers is 4-6 weeks after training.

Apply Now at https://www.loanofficerscareers.com and email us at [email protected]

How to Become a Real Estate Investor

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Special from Stratton Equities

While, technically, anyone can become a real estate investor these days, what does it really take to become a real success and what are the steps to get there?

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Before you get started, there are a few things to keep in mind that will help you determine what kind of real estate investment you want to be a part of. The first of which is figuring out what kind of real estate strategy you want to be a part of. The spectrum of which ranges between being an active investor and a passive investor.

An active investor will typically involve themselves in fix and flip strategies, wholesaling properties to investors, finding and managing a rental property themselves, or working as a licenced real estate agent in their area in order to build commissions for other future investments. An active investor is likely working non-stop, on multiple projects at once, and is always in need of funding.

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On the other hand, a passive investor can engage with real estate investing through buying shares of a property portfolio, partnering with other investors, or just generally investing in other real estate investments schemes.

The choice between being an active or passive investor is really up to the individual and how much they want to be part of the day-to-day operations and rewards of a property. Aside from some monetary constraints or a license to become a real estate agent, there are no barriers to entry to become a real estate investor as anyone can participate, they must first figure out what kind of investment strategy they wish to become a part of first.

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Once you have committed to and figured out an investment strategy, you can then move on to learning up about the properties itself. This next step will require a lot of research information as your end goal is to become a realistic competitive expert in the real estate market.

Some of the key subjects to know are what kinds of properties are there and which ones to focus on, and what is the property’s situation in terms of structural support, renovation, location, community, real estate laws and taxes.

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It is important to note that many properties are very different from each other. For example, what might the investment differences be between a multi-family rental property in rural New York compared to urban New York? Or how about a single-family property? Or a commercial property? Or the difference between the exact same property in the mountains compared to the beach? The point is you must be able to distinguish between all the different categories of real estate on top of all the different legal, geographical, and cultural factors that may arise in order to become an adequate expert in your field.

To start off, you might want to focus your skills and knowledge on a particular specialized segment of real estate investment to give yourself a potentially unique advantage.

Overall, unlike many other career paths, earning a degree is not required to become a real estate investor; but if you want to become successful at it, you will have to teach yourself and it will take a lot of time and patience.

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Once you have mastered the realm of real estate in relation to your investment strategy, you can move on to mastering the market itself. The market is not too difficult to observe itself as it simply is determined by the nature of buying and selling property. However, the difficulty arises in figuring out the right properties and the right prices.

As you probably understand, the market is not perfect. There are some properties that are overvalued and some that are undervalued. Hence the practice of real estate investment. However, understanding the market will require one to observe these properties for what they are actually worth and determine whether the process of fixing-and-flipping, or whatever investment strategy you are using, is actually worth it. And that itself is the challenge as you not only have to take into account the property itself, you also have to account for the market as a whole and where you think it is heading, which may not always be the case.

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After you have mastered the real estate market, you can move on to acquire financing, again, depending on your investment strategy of choice. Here is where your research can finally start to gain you ground in implementing your project.

As one begins to enter the industry, it will be more challenging to find other investors or people who will give you loans as you have not built the relationships yet or had the experience to prove your success. But you have done enough research to register a plan to showcase to investors to get them hooked on your idea.

It is important to know that most investment projects require a lot of capital on your end so you will want to get as much cash on hand as possible. That is where other investors and private money lenders can come in as they can give you enough money to fund your project so that you can live out your real estate investment dream.

Just make sure your strategy is sound and well-presented when trying to acquire more funds. Over time, this process will get easier as you have a longer history, reputation, and credibility within the real estate investment world.

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Lastly, just before you go out and purchase your first property, you should read up on the local and state laws so that you are prepared for any legal situation that could stand in your way. No matter how experienced one is, there are always going to be challenges you did not foresee, but the better informed and knowledgeable one is about the property, investment strategy, and local customs and legalities, the better your chances are at overcoming the adversities present towards you.

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Okay! You should now know all that there is to get started as a real estate investor. That being said, these are summarized guidelines that merely point out the general steps it should take to get started and become a successful investor. There is a lot to learn and a lot to keep in mind when practicing real estate investing. Just know that more likely than not, it is probably not going to go the way you expect. It could be that managing a rental building is much more costly and demanding than you expect. But, don’t fear. The smarter the strategy, the better the plan, and the more aware you are of the real estate market, the better your chances of success are. Good luck!

If you’re looking for financing on your next real estate investment, Stratton Equities is the leader in Nationwide Direct Hard Money and NON-QM Lending in the real estate market. Reach out to a member of our team today by applying now at www.strattonequities.com

Are You a Candidate for a NO-DOC Loan?

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By Stratton Equities

You might be a candidate for a NO-DOC loan, or No documentation mortgage loan, if you do not meet the strict Consumer Financial Protection Bureau’s (CFPB) mortgage loan conditions. This type of loan is a NON-QM loan and is designed for some rental property investors, borrowers that are self-employed, and those who do not meet conventional loan standards. private lenders can also fit self-employed borrowers into the QM space.

It is also an option for borrowers who have had challenges qualifying for a NO-DOC loan due to credit issues (such as bankruptcy, foreclosures, late payments, or other isolated credit issues) in the past or have an unconventional source of income.

Unlike the traditional income verification mandated for most loans, this type of mortgage loan allows you to be eligible based on alternative methods. NO-DOC loans create real estate investment opportunities for a wider array of people due to their more versatile qualification criteria.

A qualified mortgage loan is an “agency” mortgage-backed security. On the other hand, a No documentation mortgage loan is considered “non-agency” or “private-label”–is suitable for borrowers with exceptional circumstances or those whose incomes differ from month to month.

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Many individuals, including hospitality employees, self-employed business owners, and retirees have fluctuating earnings. This is where NO-DOC loans fill the void by offering dynamic underwriting measures for prudent borrowers with special income conditions.

A prevalent belief is that NO-DOC loans are “bad loans” in disguise, and therefore not recommended. The reality is that these kinds of loans have their own set of rules related to QM loans to ensure that private money lenders and borrowers are protected from a high-risk loan. The process of lending NO-DOC and NON-QM loans are very similar to that of QM loans, only with a different collection of documents during application.

What is the Difference between a QM and NON-QM Mortgage?

The biggest difference between a QM (Qualified mortgage) and NON-QM Mortgage, is that a QM Mortgage loan tends to be traditional government-backed loans and conventional loans.

Because a conventional loan (QM) is usually processed through a bank or traditional financial institution on an owner occupied property, a NON-QM with a private lender is the best solution for a real estate entrepreneur looking to purchase an investment property.

A NON-QM or NON-Qualified mortgage loan is typically portfolio loans for real estate investors that do not conform to the strict government or conventional mortgage guidelines.

Why Should Borrowers Choose NON-QM Loans on their Real Estate Investment?

Unlike conventional investment property loans that max out at 70% LTV, a NON-QM Mortgage Program maxes at 85% LTV and with no PMI with rates starting at 4.375%. This allows the borrower to put less money down on their purchase, typically loan amounts range between $100,000 and $5,000,000.

How can a Real Estate Investor Qualify for a NON-QM Loan?

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If you are a real estate investor that has an investment property and are looking for a quick turnaround without stringent guidelines, NON-QM loans may be better for you — NON-QM loans do not need to abide by these strict guidelines! Bottom line = This means that NON-QM lenders can provide faster service and approval to more types of real estate investment opportunities.

Private lenders who utilize QM loans must first qualify a mortgage borrower’s income, liabilities, and monthly debt payments to determine whether the borrower can successfully pay back the loan in the future. To successfully qualify for a QM loan, real estate investors must fit the strict requirements set by the Consumer Financial Protection Bureau. This approval process requires borrowers to submit extensive documentation concerning their credit history, income, assets, and monthly debt payments, which usually takes well over a month to complete.

NON-QM and Private Money lenders understand that everyone’s situation is different and that to a traditional financial institution (like a bank) some borrowers may not present like a qualified candidate for a loan. This restriction could be due to the borrower’s employment status, income, credit history, and liquid asset requirements – however with a non-qualified mortgage, private lenders focus on; high credit score, investing experience, and liquid assets.

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As a result, NON-QM loans’ lax restrictions make them ideal for these types of real estate investors:

Self-Employed Investors: Especially in light of the unprecedented year, with COVID-19, we completely understand how difficult it is to find steady income. These type of loan programs are based on the value of the property itself or the borrower’s credit score and liquid assets.

Foreign Nationals: Government backed loans typically require proof of a US Social Security number or a W2 (which is a US tax form). Because NON-QM loans don’t have such requirements, they are ideal for foreign nationals who are in the States on a visa and are looking to invest.

NON-QM Loans: The Benefits For Borrowers

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The key benefit of NON-QM loans is that they offer opportunities to borrowers who would not otherwise meet the mortgage requirement. Non-Qualified Mortgage Loans provide much-needed loan financing for millions of hard-working Americans, including self-employed people and small-business owners who have worked hard to achieve success but are not eligible for QM loans.

Below are some of the benefits NON-QM loans for borrowers:

  • Looser, more versatile underwriting and guidelines
  • Ability to close faster than a QM loan
  • Ideal for 1-4 family investment properties
  • NO-DOC Mortgage Loan: Does not require income verification or tax returns
  • Self-employed people are top candidates for NON-QM loans

For specific borrowers with unique income sources or a high DTI, a NON-QM loan will enable them to obtain the money they need. NON-QM lenders also set standards for Non-Qualified Mortgage Loan borrowers and need to determine their potential to repay.

This type of mortgage loan is ideal for a wide variety of potential borrowers and can be used to buy commercial and investment assets. It is advisable to contact a certified loan officer to determine your qualification for a NON-QM loan, so they can review your profile to ascertain if this product is perfect for you.

How to Benefit from a Private Money Loan

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By Stratton Equities

Banks used to be the only option for real estate investors trying to take out loans. Nowadays, private money lenders are allowing investors to borrow money under more flexible conditions. Banks and traditional financial institutions can reject your loan application for multiple reasons—your credit score, your debt-to-income ratio, employment status, etc.— What private money lenders do is implement a framework that makes it easier and more conducive to be a real estate investor.

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The real estate market moves fast, and it is often crucial to act quickly. But the process of getting a traditional loan through a bank can often be lengthy and complicated. Many of the solutions and loan programs from private money lenders are easier and quicker to get than through banks, which is why private money loans are often better options for real estate investors.

Making investing easier

What private money lenders like Stratton Equities do is accommodate real estate investors.

“Real estate investors, as we all know, don’t have the greatest of tax returns,” Stratton Equities’ CEO Michael Mikhail said. “They move money around, have different trusts, and have different accounts. Banks absolutely frown upon that and they actually hate it. Good luck getting a loan through a bank or mortgage company if you’re a hardcore real estate investor.”

The programs offered by private money lenders are designed for investors, who oftentimes can’t show their income and make a lot of monetary transactions. Companies like Stratton Equities have put in place certain standards that make it easier to take out a real estate investment property mortgage. These include no tax returns, no upfront fees, and no junk fees.

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The closing time for loans from private money lenders is much faster. This element can be crucial for investors, as sometimes the faster you close, the better chance you have at securing a transaction. Also, the LTV (loan to value) ratio is higher with private money lenders. Loans from traditional institutions on investment properties usually max out at 70% LTV, while those from private money lender Stratton Equities can go up to 85%. You’ll likely be spending less through private money lenders too. “If you go to a bank, you’re going to have PMI (private mortgage insurance) with those loans, a few extra hundred dollars per month,” Mikhail explained.

The Loan Process

The first thing you’ll want to do to get a private money or NON-QM loan, for example a hard money loan is to contact a private money lender. As the borrower, you should be ready to provide the lender with information like the location of the property, purchase price, and estimated appraised value.

The lender will ask questions to get to know you and your borrowing history. After this, the lender will appraise the property and come up with a loan offer for you. The lender will review the documentation and complete the underwriting process for the loan. This process is usually speedy, but it varies from lender to lender.

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After the loan is completed with underwriting it gets moved to the closing department. As a borrower, you’ll have to sign a variety of documents during this phase, but it is relatively straightforward. The lender will then send the funds to the title company so the deal can be completed.

Many real estate investors have found that getting loans from private money lenders is their best option for achieving their investment goals. Be it a hard money or a soft money loan, private money lenders are faster, more understanding, and more lenient than mortgage companies and banks. You have to consider that these companies’ sole purpose is to give loans to real estate investors, so naturally, they’ve found ways to make the process smoother. If you’re thinking of getting into real estate investing, you should definitely take these factors into account.

Contact Stratton Equities, the leading hard money and NON-QM lender, to speak with one of their talented and experienced loan officers at 800-962-6613, email us, or apply for loan pre-qualification today!

Why Are Bridge Loans A Great Choice For Real Estate Investors?

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By Stratton Equities

In the world of private lending, real estate entrepreneurs are building strong careers investing in real estate utilizing asset-based loans.

An asset-based loan product is based on the value of the available equity in the property, it closes faster than a traditional mortgage, and requires less paperwork.

One of the most common asset-based loan products are bridge loans and they are quickly becoming a perfect solution for real estate investors who are looking to grow their investment portfolio.

What are bridge loans?

A bridge loan is defined as a short-term (12-24 months) real estate loan that closes faster than term loans or conventional loans. Real Estate Investors work with lenders who offer bridge loans, because not only do they close quickly, the guidelines are more lax, therefore there is less underwriting and documentation needed.

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​Real Estate Bridge loans are temporary loans, secured by the asset (real estate), the typical property bridge loan has a term of 12-24 months, although many bridge loan lenders will grant the owner the option to extend his loan for six months to one year.

Why should you get a bridge loan?

There are more benefits than you can count for with bridge loans. The greatest benefit is the speedy approval process. As a real estate investor, with a simplified approval process, it becomes quick, which is key to getting a great real estate property before someone else does. However, as a result of the faster process, they have higher interest rates.

If you are a real estate investor that does not have a stable cash flow or if you are self-employed, this is perfect for you. The private lender does not look at your salary or tax returns so you don’t need to worry if you do not have a stable income. Another benefit is how the loan is utilized. It doesn’t need to be solely purchasing a specific property but can be used for a variety of purposes. For example, it can be used for Cashout or Rate & Term programs.

Since it’s a bridge loan, it can give you the flexibility you need to stay afloat and let your real estate business thrive.

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Why Should You Use a Bridge Loan?

  • It’s Straightforward & Easy : This type of loan has short-term financing (12-24 months) for real estate investors, who prefer to finance the purchase and/or rehab of their investment property, with a Fix and Flip loan (also a Bridge Loan) or a Cash Out Refinance loan.
  • ​Quick Access to Funds: With conventional loans, there are qualifications that restrict you from getting access to those funds. With a Bridge Loan, there are less guidelines, underwriting, and restrictions that will provide you with quick access to financing.
  • ​For Every Type of Real Estate Investor: A Bridge Loan is a great solution for any real estate investor – at all experience levels.
  • ​Options for all types of Properties: At Stratton Equities, we have Bridge Loans that are tailored to your investment needs. Here are some of our Bridge Loan options for Real Estate Investors; Fix and Flip, Cash Out Refinance, or Purchase Money.

​BRIDGE Loan Summary

  • ​​Investment Properties Only: Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, Warehouse
  • Rates Starting at 7.25%
  • $100K – $5M
  • Up to 75% LTV
  • Blanket Loan Options Available
  • Fixed rates/Adjustable
  • 9-24 Month Terms
  • Interest Only Payments
  • Purchase, Refinance, or Cash Out
  • Foreign Nationals Eligible
  • No Prepayment Penalty Option Available

How do you apply for a bridge loan?

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If you need a quick streamlined process with a repayment phase of 12-24 months, with less underwriting and documentation, these loans can be approved quickly and even extended if you wish. There is also no minimum FICO requirement. These are great loans for real estate investors with any experience level. They also work for the majority of investment properties.

Call us at 800-962-6613 or contact us at [email protected] and apply now at https://www.strattonequities.com/loan-pre-qualification to find out whether you are eligible for loan pre-qualification!

How Soft Money is the Future of Real Estate Lending

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Investor and Brokers, be sure to listen or download our newest podcast today as we focus on the future of “Soft Money”.  On this exciting episode, we speak with Michael Mikhail, Founder and CEO of Stratton Equities, the nation’s leading hard money and NON-QM lender to national real estate investors. Stratton Equities offers the largest variety of mortgage loans and programs under one roof.

Having launched Stratton Equities in early 2017, Michael has always been an entrepreneur and innovator in the real estate market, purchasing his first home at 19 utilizing hard money.

A serial entrepreneur with a foresight for business opportunities, Michael had a slew of small businesses prior to launching Stratton Equities.

One of his most prolific ventures was a car wash connected to a gym, which he was affiliated with in Florida.

Michael officially joined the mortgage industry in 2003. By 2017, Michael noticed how the mortgage industry had transformed after the regulations presented from 2008-2012, and knew it was time to set out something on his own, thus creating Stratton Equities.

Under Michael’s leadership, Stratton Equities has grown into one of the biggest leaders in the Mortgage and Real Estate industry across several genres and platforms. Listen to Realty411’s Invest Wisely Radio segment, click below.

If you enjoyed this podcast, be sure to follow our blogtalk radio segment, CLICK HERE.