Thoughts on an Idea

Thoughts on an Idea

Real Estate Investor · Pittsburgh, PA · Member since 2011 · 90 posts · 22 votes

While saving money and learning along the way I thought it would be a good way to make a small income through real estate. I would like to build a seller/buyer list for down the road wholesaling and other reo. I am not sure if anyone has done this but was hoping to get some type of feedback.

I want to match tenants with landlords/investors who are looking to fill apartments and homes. I would meet investors through advertising and local REI meetings and market my own signs and other advertising methods to find proper tenants, along with the proper screenings and credit checks. The service would be free to the potential tenants and a percentage of a year's rent to the landlord.

My hopes are that the work I will put in and the quality of the tenant I find will compensate the payoff for the investor. However, I do have a few concerns. Do you need a real estate license to do this? I plan on getting my license in the upcoming months but want to get started a.s.a.p. if I can. Do you think there would be a sizeable market to do this?

My goal is simply to get out and meet investors and practice marketing strategies and get a foot in the door to the real estate game. I believe this would help greatly down the road in wholesaling and property management skills.

Any response would be greatly appreciated.

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  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y

    Sounds like a brokering activity; in the state of PA, not just a real estate agent's license is needed - you will need a broker's license. Or you may do this with the blessing of some broker, I believe.

  • Real Estate Investor · Pittsburgh, PA · Member since 2011 · 90 posts · 22 votes
    14y

    Steve:
    Can you tell me where I can verify this at? Is there a website or should I just contact a broker and ask them about it?

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y

    Every state has different laws, but what you are talking about is no different than what a property manafger does and in many states, a license is required.

    I am guessing that it would be hard for you to get such business when most apartment owners already have PM's working for them and they also offfer the added service of managing that tenant during their stay, of which you are not.

    I don't mean to burst your bubble, but if you want to make money as a RE investor on the side, you need to pick a strategy that is proven and that fits your personality and abilities. If that is wholesaling, then you need to learn everything there is about being a real wholesaler. If you want to do something else, then learn about that.

    A great place to start and get some ideas would be to attend the BP RE Summit in March held in Denver - Check this website for more details here: http://www.biggerpockets.com/conference/

  • Real Estate Agent · Hackettstown, NJ · Member since 2011 · 206 posts · 62 votes
    14y

    You could try putting a QR code on your business card.

  • Real Estate Investor · OH · Member since 2009 · 37 posts · 11 votes
    14y

    Check out these websites on licensure requirements for PA:
    http://www.pacode.com/secure/data/049/chapter35/chap35toc.html#35.221.
    http://www.learnrealestate.com/SK/require.htm

  • FL · Member since 2009 · 2k+ posts · 357 votes
    14y

    Scott H.,
    Linked for you:

    http://www.pacode.com/secure/data/049/chapter35/chap35toc.html#35.221

    http://www.learnrealestate.com/SK/require.htm

    Raymond

  • Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes
    14y

    I agree with what Will Barnard said, if the owner is hands-on enough to manage the tenants, they will likely be hands-on enough to find them too. I would guess there is a VERY small market for owners that would want to pay to find a tenant but not anything to manage the tenant.

    Finding the right tenant is the hardest part of the process, but as a "hands-on" owner, I want that responsibility, I wouldn't trust, let alone pay somebody to take that over for me.

    I just want to point out I'm not bashing your idea, I actually like the thought of it, but I just don't see there being much of a market for it.

  • Investor · San Ramon, CA · Member since 2011 · 1k+ posts · 569 votes
    14y

    Personally, as a landlord... I would be willing to pay someone to show my vacancies and do the advertising, etc. That's mostly because I'm 30 - 60 minutes from my properties. I don't hire a Property Management company simple because I can handle the day to day calls myself. It's fairly easy to google handyman services even from an hour away and I'm not willing to pay someone 10% to handle those rare calls. But someone local that could save me 2 hrs in the car when I do have a vacancy?

    Biggest issue for you is that's generally short term work. You would need to pick up a BIG client basis to make ends meet month to month. You're going to make maybe $200 - 400 a vacancy. If the vacancy rate is 5% you're going to need several hundred units to make sure you're filling 10 or more a month to make a living.

  • Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
    14y

    for the most part, i find my own tenants..occasionally,i've had another landlord or realtor pass a great tenant on to me..if i feel they're gonna be a great tenant, i usually compensate them with half the month's rent or something similar..let's them know i appreciat eit, and a good tennat is more than worth that in my opinion..now, i had a guy send a bad tenant a few years back,and i would never ever trust him to send a tenant my way again..his vouching for anyone's character would mean nothing to me after that fiasco...

  • Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    14y

    Jarred S. You could narrow your plan to specialty advertising which could lead to small income and keep you learning the business and building lists. Just a thought... like rentmyhomefast.com or (for resort property) vrbo.com, except keep it local to your area and add value to the service with stuff like school district overlays or whatever teannts may want to see.

  • Real Estate Investor · Pittsburgh, PA · Member since 2011 · 90 posts · 22 votes
    14y

    Thanks for the replies. Scott, special thanks for the links I will look up all the information when I get home.
    The idea was centered around the benefit of networking as a newbie to the real estate game. Meeting investors and understanding a little about property management could help me down the road as I build my own rentals up.
    From what Will and Michael responded maybe I should scale down a bit. I do not plan on making a living out of this whatsoever. Doing this part time would hopefully give me a true understanding of what I do want to focus on. I know I want to get into rehabs down the road but I am finding it hard to see that as a starting point. That is another post all in itself.

  • Real Estate Investor · Pittsburgh, PA · Member since 2011 · 90 posts · 22 votes
    14y

    Bryan A. Thanks for the response. I realize me vouching for the tenant would be the cornerstone of my service. Whether positive or negative, this will s
    Chris Martin Interesting. Never really read up on this. I know I will now.

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