As an investor I have decided to apply for my salesperson license in order to check the MLS listings each morning and get access to local properties here in CA.
There is one issue though I am not real clear on I though:
I know I could write my own offers assuming I am associated with a broker, but, are there any potential legal aspects that would make this a bad strategy. (In other words would it be a safer strategy to have a third party salesperson represent me by writing up the offers, assuming I can find someone that is willing to dedicate the time required to write up quite a few below market offers).
There is no doubt in my mind that getting a RE license to look at MLS listings every morning is a waste of a real investors time.
Become an assistant of a Realtor that already has a Lic and have them get you your own key. Its very legal
I have had mine for a long time, and don't want to go without it now, but I would certainly suggest spending your time as an investor and hire an Experienced Realtor to JV with you.....a much better use of time and resources
Mike, I agree it may not be the best investment in time since I have no intention of acting as a realtor for other clients. The problem I have in SoCal though is many of the locks are electronic and becoming an assistant will only give me access to my brokers listings. In other words I could only look at other listings with a broker, a big hassle.
Also I plan on doing this full time. I will be writing lots of offers with a big discount to retail. Many of the brokers I have worked with sour on this strategy after a short time. In the beginning they say they love working with investors but once you get in the trenches, what they really mean is investors that are willing to make very little profit. I would say about 5% of my offers are accepted, and when you combine this lots of time driving to listings, I understand the frustration on their end.
Also I do not plan on wholesaling, but beyond disclosure of my status, am I held to a higher standard when I sell my that has been rehabbed ? I do plan to continue to let an agent handle all my sales, but I am not sure if I will be easier for a buyer to sue me since there may be a perception I am held to a higher standard since I am in the business even though I am not representing myself.
Dave, I think it makes sense in your case to get licensed. I can't answer your questions as to Ca law on higher standards but it is that way in FL but more geared toward protecting the end user/buyer not the qualified commercial investor per say.
You will be held to a higher standard than a non-licensed person, and you will get sued. That said, the cure for that is to act with good faith, disclose everything material or not, and make sure your errors and omissions insurance covers properties you own. Some policies require the buyers to get a home inspection for you to be covered - just put it in the listing. Agents sell their own properties all the time, no crime there, and no reason to hide in the corner.
Welcome to the "dark side". Now you'll be almost as hated as used-car salespeople... :D
Be very careful on non MLS private party deals, disclose you are an agent every time.
Some banks wont pay commission to an agent/buyer when buying an REO. They figure getting to buy the property is good enough for you. Like I said, some, not all.
If the agent forgets to put a disclaimer in the MLS that the bank will not pay an agent a commission when they purchase the property themselves, the agent may have made a mistake that means the agent is responsible for paying the commission, even if the bank will not pay. Depends on the rules of the MLS, the way the listing is stated in the MLS. Speak with you broker, if unsure talk to your association regarding this listing.
I am an agent and I write 20-50 offers a week on REO's for myself to purchase. I couldn't imagine asking an agent to do this busy work for me with so little reward. You can then list your own rehab for sale, just don't double end your own rehab and you should be fine. When you get your license ask your broker what language you should use for disclosure and put it in all contracts. It's that simply, really.
Mar 31 '09, 11:53 AM
