I'm having trouble deciding if working as a Realtor full time instead of my regular job as a teacher would help me get into real estate investment. I thought having access to the MLS and vacant houses as a Realtor, and not paying closing costs would be beneficial, and I could incorporate what I learn in sales into the investment side of real estate. But I don't know if many agencies want me to do wholesaling or real estate investment. I passed the real estate test, so I'm ready to start with an agency. Either way, I want to get started in real estate investment.
Firstly congratulations on passing the exam.
I have a friend who is a wholesaler as well as a real estate broker (that's what we call realtors in Washington state) and his agency either doesn't know that he does wholesaling or doesn't care. Based on his experience and what he's told me, it appears he has a slight leg up on the competition given his access to MLS.
I think that if you were to work for an agency to be upfront with them about your intentions and hopefully avoid a very sticky situation down the line.
Thanks Patrick. We call them brokers too. I can become one after I have 3 years of experience as a real estate salesperson. Maybe I would have a leg up too. I would definitely be upfront with the agency.
I don't think it will help out too much on the wholesale side but it will greatly help out if you start investing. Being able to access the properties on your own, writing your own contracts and saving on comissions will definitely help. You will still have to pay the closing costs though.
When you have your license active with a broker, you will need to disclose that you are an agent. You will need to do that with every deal you buy, even if it's your own. That's the only downside that I know of.
Thanks Aristotle! Do you think sellers would be put off by this?
congrats on passing your test - I am almost there myself and contemplating whether to hang the license or not . . because of wholesaling. What's been said above about disclosure is true, and my belief is that a seller that needs to sell is not going to care about you disclosing. The sticky-wicket based on what I'm determined talking with possible brokers to work for is that wholesaling is really a grey area . . . you are going to have to disclose out the wahzoo on your paperwork with the seller AND the buyer exactly what is going on and the broker is going to have to be good with it as well. My conclusion for myself when considering wholesaling as an agent is that for ME - so I can sleep at night and not have the worry of the what if's? - is to close on the property myself and then resell it. And disclose out the wahzoo to everyone that that's what I'm intending to do as a principal, not as an agent. Because agents are held to a higher standard based on the fact that they are licensed, there is so much grey area in there that it really is murky. I'm sure some agents wholesale as agents and I am very interested to hear how they legally do that . I could be completely wrong; but this is what I get In the course of interviewing brokers . . . and these are brokers that are investors themselves, very investor-friendly.
Thanks, Christina, for your imput. I have started to question whether I want to do wholesaling. I am now thinking I might rather buy a distressed property, rehab it, and then hold it. I might start with a three family and live in one unit and rent out the other two.
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