Debate On A Realtor License

Debate On A Realtor License

Wholesaler · College Station, TX · Member since 2012 · 20 posts · 1 vote

Being as though I live in a Non-Disclosure state and have been unsuccessful at getting a Real Estate Agent to work with me, I have been debating on going for my own Real Estate License. I have read lots of pros and cons to being an Investor with a Realtor license. If I understand correctly, I must work under a Broker in order to gain and keep MLS access? I have an opportunity to further my education with little out of pcket expesne, so I thought it would be good to look into getting my license. What are your thoughts on the RE License issue BP?

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Residential Real Estate Broker · Pensacola, FL · Member since 2012 · 221 posts · 49 votes
13y

***SCREAMING*** Ok, Sweet Jesus, I had a Cold Pop.

If you buy one deal a year from the MLS, then YES...get licensed.

I've bought and sold over 100 units personally in the past decade. I find 98% of my deals in the MLS. There's no substitute for the MLS database. Not only can you find deals and earn the agent's portion, you can accurately predict your investment numbers: current value, ARV, your rental values, etc.

Florida, as I'm sure all states do, require that you disclose you're a licensed agent and a principal to a deal. This has no bearing on your negotiations with a seller or buyer. The other party doesn't care if you're an agent, a mortician, a transsexual, etc.

Don't worry about finding a broker that will accept your license due to your investing activity. The average full time agent probably closes six deals a year, it's dismal and it's always been this way (excluding the boom years and maybe the average agent closed a dozen deals a year). As long as you act ethically and within the law, your broker won't care what you do. Just be upfront with your broker before he/she hires you, have a clear understanding so there are no surprises. If you have to interview ten brokers before you find a fit, who cares. If you're lucky you'll get a progressive broker who will teach you about the brokerage business (if you have any interest outside of investing).

Even if you're a wholesaler, I encourage this. There's one agent in our town that makes his living wholesaling. Every listing of his I have ever seen in the MLS has his disclaimer "listing agent has a lease option with the seller and is a principal to this transaction." He's the only agent I've ever seen that's a wholesaler, but he must be doing well as I see his name on more listings than most agents. He's also with one of the largest, well liked brokerages in town.

I can't get more enthusiastic about this advice for the non licensees here. Let me know if any questions.

See this reply in the discussion

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  • Real Estate Investor · Redwood City Bay Area, CA · Member since 2013 · 26 posts · 6 votes
    13y

    Sandy Blanton
    Thanks much for the encouragement and advice. You cleared up a few things for me.

  • Real Estate Investor · Santa cruz, CA · Member since 2013 · 6 posts · 1 vote
    13y
    Originally posted by Sandy Blanton:
    ***SCREAMING*** Ok, Sweet Jesus, I had a Cold Pop.
    If you buy one deal a year from the MLS, then YES...get licensed.

    I've bought and sold over 100 units personally in the past decade. I find 98% of my deals in the MLS. There's no substitute for the MLS database. Not only can you find deals and earn the agent's portion, you can accurately predict your investment numbers: current value, ARV, your rental values, etc.

    Florida, as I'm sure all states do, require that you disclose you're a licensed agent and a principal to a deal. This has no bearing on your negotiations with a seller or buyer. The other party doesn't care if you're an agent, a mortician, a transsexual, etc.

    Don't worry about finding a broker that will accept your license due to your investing activity. The average full time agent probably closes six deals a year, it's dismal and it's always been this way (excluding the boom years and maybe the average agent closed a dozen deals a year). As long as you act ethically and within the law, your broker won't care what you do. Just be upfront with your broker before he/she hires you, have a clear understanding so there are no surprises. If you have to interview ten brokers before you find a fit, who cares. If you're lucky you'll get a progressive broker who will teach you about the brokerage business (if you have any interest outside of investing).

    Even if you're a wholesaler, I encourage this. There's one agent in our town that makes his living wholesaling. Every listing of his I have ever seen in the MLS has his disclaimer "listing agent has a lease option with the seller and is a principal to this transaction." He's the only agent I've ever seen that's a wholesaler, but he must be doing well as I see his name on more listings than most agents. He's also with one of the largest, well liked brokerages in town.

    I can't get more enthusiastic about this advice for the non licensees here. Let me know if any questions.

  • Real Estate Investor · Santa cruz, CA · Member since 2013 · 6 posts · 1 vote
    13y

    hello all i loved this post it spoke to all my questions i loved the (*****SCREEMING ***) part the best i could feel the laughter in the post hope all are well

  • Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
    13y

    Laura,

    The software fee went up to $90 per month.

    Joe Gore

  • Investor · DMV Maryland · Member since 2013 · 867 posts · 370 votes
    12y

    is there a post/blog on BP that details the procedure in getting licensed - or maybe a website that clearly lays out what is required -to get MLS access? I'm in MD and I want to pursue this for the (1) control JScott and many others mention and (2) MLS access for comps.

    Are there online courses for this?

    Thanks in advance for replies

  • Investor · San Antonio, TX · Member since 2014 · 90 posts · 35 votes
    11y

    If your interest in a RE License is to better have access to do comps then you might reconsider. Comps are not that hard using your County Tax Records, Zillow, and other RE search engines...Practice, Practice, Practice...You need some more guidance check with @John Jackson or @Brian Gibbons 

    Recently, for about 1 year or so, I have found the comps and info (especially on expired listings) I get from a friendly Realtor is junk so I'm more confident on my own comps...

    Lastly, in some states if you have a RE License you limit your ability to market to some homes using some RE Investment strategies that are listed with other Realtors due to infringement laws preventing Realtors from so called pouching on other Realtors signed Clients/homes they have listed.

    GL,

    Chavel

  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    11y
    Originally posted by @Chavel Diaz Jr:

    If your interest in a RE License is to better have access to do comps then you might reconsider. Comps are not that hard using your County Tax Records, Zillow, and other RE search engines...Practice, Practice, Practice...You need some more guidance check with @John Jackson or @Brian Gibbons 

    In many places, it can take up to 90 days for a deed to get recorded and the county records to be updated.  Zillow has the same issue. 

  • Investor · North Richland Hills, TX · Member since 2011 · 789 posts · 403 votes
    11y

    Really, the only reason not to get you license is if you are mailing to listed houses. 

    I get so many leads from my VA's that I can barely keep up with it, so I haven't done a mailing to listed homes in a few months, so I've thought about getting my license before.

  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    11y

    Get your license, especially if you are assigning anything many times.  You can not get rich in residential real estate without a license IMHO.

    @J Scott makes a good point, you need that friggin MLS for comps.

  • Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    11y
    Originally posted by @Chavel Diaz Jr:

    Lastly, in some states if you have a RE License you limit your ability to market to some homes using some RE Investment strategies that are listed with other Realtors due to infringement laws preventing Realtors from so called pouching on other Realtors signed Clients/homes they have listed.

    Even if you don't have a license, how are you going to buy a listed house without the agent involved? The seller has a contract to pay a commission whether the agent brings the buyer, or the seller finds a buyer themselves. I don't see how having a license would be a disadvantage in any way. 

  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    11y

    @Rob 

    @Rob K. was referring to if you are licensed you can not approach a listed seller with a terms deal, interfering with a listing.

    If you are not licensed you can knock on the door of the listed seller and offer to buy on wrap, lease option or sub2.

  • Investor · San Antonio, TX · Member since 2014 · 90 posts · 35 votes
    11y

    Thanks @Brian Gibbons ...I'm assuming that's the case in California as it is here in Texas.  Michigan, I wouldn't presume to know...

    GL @Rob K. 

    Chavel

  • Dallas, TX · Member since 2010 · 14 posts · 6 votes
    11y

    @John Jackson 

    Hey John, What type of leads are you having your VA's get? Are you having them cold call craigslist ad's like Joe McCall teaches?

  • Rick BevilacquaPro Member
    18901 · Member since 2015 · 43 posts · 12 votes
    11y
    Originally posted by @Sandy Blanton:

    ***SCREAMING*** Ok, Sweet Jesus, I had a Cold Pop.

    If you buy one deal a year from the MLS, then YES...get licensed.

    I've bought and sold over 100 units personally in the past decade. I find 98% of my deals in the MLS. There's no substitute for the MLS database. Not only can you find deals and earn the agent's portion, you can accurately predict your investment numbers: current value, ARV, your rental values, etc.

    Florida, as I'm sure all states do, require that you disclose you're a licensed agent and a principal to a deal. This has no bearing on your negotiations with a seller or buyer. The other party doesn't care if you're an agent, a mortician, a transsexual, etc.

    Don't worry about finding a broker that will accept your license due to your investing activity. The average full time agent probably closes six deals a year, it's dismal and it's always been this way (excluding the boom years and maybe the average agent closed a dozen deals a year). As long as you act ethically and within the law, your broker won't care what you do. Just be upfront with your broker before he/she hires you, have a clear understanding so there are no surprises. If you have to interview ten brokers before you find a fit, who cares. If you're lucky you'll get a progressive broker who will teach you about the brokerage business (if you have any interest outside of investing).

    Even if you're a wholesaler, I encourage this. There's one agent in our town that makes his living wholesaling. Every listing of his I have ever seen in the MLS has his disclaimer "listing agent has a lease option with the seller and is a principal to this transaction." He's the only agent I've ever seen that's a wholesaler, but he must be doing well as I see his name on more listings than most agents. He's also with one of the largest, well liked brokerages in town.

    I can't get more enthusiastic about this advice for the non licensees here. Let me know if any questions.

     Sandy,

    I realize this is an old post, but I would love to discuss in more detail with you, your use and experience with purchasing 98% of your 100+ deals off of the MLS! If you're still active on BP, please reach out to me! Thanks!

  • FL · Member since 2009 · 2k+ posts · 357 votes
    11y

    @Rick Bevilacqua,

    I'll tag @Sandy Blanton for you.

    Hopefully, she'll respond to your question.

    Also,

    To Make the @ work do the following:

    Hold down the shift key and type the following: @?

    Look below this Window, and you will see a list of list of names of people who have posted in this thread.

    Click on the name of the person that you want notified via an email that you responded to them.

    If you are a Colleague with anyone that has not posted in this thread, and you want them to see your post, hold down the shift key, and type the @ and the first 4 letters of the first or last name.

    Look below this Window, and click on your Colleague's name.

    They will be notified via an email about your post in this thread.

    Raymond

  • Rick BevilacquaPro Member
    18901 · Member since 2015 · 43 posts · 12 votes
    11y

    Thanks @Raymond B ! Sandy did reply to me by message. Thanks for your help!

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