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Investor vs lender

The differences between investors and lenders can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 2-4 years to become an investor, becoming a lender takes usually requires 4-6 years. Additionally, an investor has an average salary of $88,055, which is higher than the $37,723 average annual salary of a lender.

The top three skills for an investor include financial statements, IR and press releases. The most important skills for a lender are customer service, loan applications, and business development.

Investor vs lender overview

InvestorLender
Yearly salary$88,055$37,723
Hourly rate$42.33$18.14
Growth rate8%4%
Number of jobs8,4096,465
Job satisfaction--
Most common degreeBachelor's Degree, 72%Bachelor's Degree, 63%
Average age4245
Years of experience46

What does an investor do?

An investor is a person who decides to put on their money into a particular bank, company, or institution without assuring the return of that investment. Often, investors spend their money on education, business, or even retirement. Some people also invest in mutual funds, stock exchanges, real estate, or stocks in a corporation.

What does a lender do?

A Lender is a financial institution, an individual, or a private or public group that provides loans to a business or an individual. As a lender, you will evaluate a borrower's creditworthiness by assessing loan applications. You will be responsible for determining an applicant's financial eligibility and all applicable metrics and ratios. Other duties might include setting up plans for debt payment, counseling clients on restrictions and policies, and maintaining and updating account records. Also, you will need to update your knowledge on the different loan types and financial services.

Investor vs lender salary

Investors and lenders have different pay scales, as shown below.

InvestorLender
Average salary$88,055$37,723
Salary rangeBetween $36,000 And $214,000Between $25,000 And $55,000
Highest paying CityWashington, DCSeattle, WA
Highest paying stateAlaskaSouth Dakota
Best paying companyGoldman SachsCiti
Best paying industry-Finance

Differences between investor and lender education

There are a few differences between an investor and a lender in terms of educational background:

InvestorLender
Most common degreeBachelor's Degree, 72%Bachelor's Degree, 63%
Most common majorBusinessBusiness
Most common collegeNorthwestern UniversityUniversity of Pennsylvania

Investor vs lender demographics

Here are the differences between investors' and lenders' demographics:

InvestorLender
Average age4245
Gender ratioMale, 61.9% Female, 38.1%Male, 49.2% Female, 50.8%
Race ratioBlack or African American, 10.0% Unknown, 5.1% Hispanic or Latino, 11.9% Asian, 5.3% White, 67.1% American Indian and Alaska Native, 0.6%Black or African American, 9.3% Unknown, 4.6% Hispanic or Latino, 16.3% Asian, 6.3% White, 62.9% American Indian and Alaska Native, 0.5%
LGBT Percentage12%8%

Differences between investor and lender duties and responsibilities

Investor example responsibilities.

  • Manage $250K portfolio with exposure to commodities, futures, and equities.
  • Manage a grand opening, create business website and Facebook marketing, implement marketing campaigns and sales events.
  • Manage nation-wide CRM application between technical teams and business departments.
  • Manage commercial and multifamily REO portfolio preparing property operating plans to enhance value and marketability of REO asset
  • Prepare and review necessary reconciliations to ensure assets balance and agree to FNMA actual/actual and schedule/actual reports.
  • Procure replacement instruments regarding lose securities.
  • Show more

Lender example responsibilities.

  • Manage a multifacete commercial real estate investment firm.
  • Coordinate the real estate transactions including appraisals, inspections, loan origination and timely closing.
  • Point of contact between external company affiliate loan origination branches and licensing agencies.
  • Complete quarterly updates on all regulations and requirements to maintain NMLS nationwide licensing program.
  • Work directly with consumers as well as real estate agents, CPA's and attorneys.

Investor vs lender skills

Common investor skills
  • Financial Statements, 9%
  • IR, 8%
  • Press Releases, 7%
  • Investment Community, 5%
  • Real Estate, 5%
  • Reconciliations, 4%
Common lender skills
  • Customer Service, 15%
  • Loan Applications, 8%
  • Business Development, 6%
  • Bank Products, 6%
  • Origination, 6%
  • Loan Portfolio, 5%

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