Benefits to part-time Real-estate investor getting licensed
Portland , OR · Member since 2018 · 5 posts · 1 vote
I have been doing some part time real-estate investing (In Oregon), made some good money on a few fix and flips over the years. I would like to keep the momentum going and get more active. I think the next logical step is to get my real estate license. I do have a full time job I’m not planning on leaving anytime soon. Nor am I planning on being a conventional real-estate agent. The intent is to only broker my own deals and gain access to more resources in the industry. That being said, if I’m a licensed agent, but not working for any principal broker. What latitude does that really give me?
Access to MLS?
Ability to set up viewings of listed properties?
Would I need to carry my own insurance?
Will these costs outweigh the benefits?
Thank you.
Personally I would never become a real estate agent. It would distract me from more core competency of being a real estate investor. Plus, how could I ever expect to be as good as someone with 10 or more years experience, especially if you say you would only be doing is part time and for your own deals. MY recommendation is to find a good agent that will work with you and give you the information whenever you need it. Chances are you'll reap the benefits by them moving the property faster than you could. Again, make sure it's a good realtor with lots of transactions. Someone that knows how to market and sell properties.
It could be very advantageous and save you thousands on commissions and having access to the MLS is very helpful as well.
Having access to properties without having to wait for an agent is priceless. Time is money and being able to scout your own deals at your own leisure is worth it.
Not sure how insurance goes for Oregon, but I would assume you would need some sort of E&O insurance.
Personally I would never become a real estate agent. It would distract me from more core competency of being a real estate investor. Plus, how could I ever expect to be as good as someone with 10 or more years experience, especially if you say you would only be doing is part time and for your own deals. MY recommendation is to find a good agent that will work with you and give you the information whenever you need it. Chances are you'll reap the benefits by them moving the property faster than you could. Again, make sure it's a good realtor with lots of transactions. Someone that knows how to market and sell properties.
I have been doing some part time real-estate investing (In Oregon), made some good money on a few fix and flips over the years. I would like to keep the momentum going and get more active. I think the next logical step is to get my real estate license. I do have a full time job I’m not planning on leaving anytime soon. Nor am I planning on being a conventional real-estate agent. The intent is to only broker my own deals and gain access to more resources in the industry. That being said, if I’m a licensed agent, but not working for any principal broker. What latitude does that really give me?
Access to MLS?
Ability to set up viewings of listed properties?
Would I need to carry my own insurance?
Will these costs outweigh the benefits?
Thank you.
Hello Scott! In Oregon you have to hang your license under a principal broker for three years. After three years you can become a principal broker yourself. There are many investor friendly brokerages. My husband and I work under Premiere Property Group and they are great. Our E&O insurance is covered by a transaction fee we pay which is reasonable. If you are an independent principal broker I believe you would be required to carry E&O insurance (just a smart business move) but you could call the Oregon Real Estate Agency and ask them. Its a highly regulated industry - I would suggest you consider just finding a brokerage that will work with you - there are many.
In order to be a member of RMLS you have to be a Realtor which requires joining the national board of Realtors through the local board - in Portland its The Portland Metropolitan Association of Realtors (PMAR). PMAR dues are $680 per year. RMLS fees vary on whether or not you are an independent principal broker or associated with a brokerage - as do licensing fees.
I think if you are acting as your own listing broker for your flips and do a few a year the cost would definitely make up for the fees you will have to pay versus what you would save in commissions - at least if you are in the Portland Metro area. But you should do your own research as to whether or not you can find a brokerage that will keep your transaction fees low. Additionally there are continuing education requirements. So it would probably come down to how much of an inconvenience it is and whether or not its worth your time to jump through the hoops! None of these entities care if you are doing it for your own benefit - you will be held to the standard of a full-time real estate agent when it comes to fulfilling their requirements. But its super great to have access to comps and schedule your own showings!
Good Luck!