Transitioning from Real Estate Agent to RE Agent and investor
Currently I am Real Estate agent however I would like to transition as Real Estate Agent and investor. I do not know how to manage my situation with my broker in regards to leads management and its commissions.
Can somebody provide some insight about how to transition correctly?
I do not see a problem here... a good percentage of agents are investors. If a lead is your own there is nothing wrong with offering to buy the property youself (by law you do need to disclose you are an agent though). If you broker is sending you leads just offer them to pay them a discounted commission if you close on any of the properties they send you.
You will also find that once you start doing this, investor clients will naturally gravitate towards you. At first I didn't want to take them because first time buyer clients are easy money, but now I have clients that keep coming back and buying 1 or 2 homes every year. It's great!
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Real Estate Agent TX (#745809)
- Royal Equity Property Management
- Real Estate Broker
- Coppell, TX
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What does becoming an investor mean to you?
Do you mean wholesaler or a flipper? That is not an investor. That's real work of a transitional nature.
Do you mean you want to buy, hold, and rent? That's an investor. No reason you can't do both and build your fortune.
Talk to your broker about it. See what they have to say. Maybe you can be the guy in your office who offers every agent a cash buy option. So if you have the cash and willing to close, you are the guy who steps in and makes cash offer on every property they intend to list. Win-Win for you, the other agents, the broker, and the seller.
Now if you want to play games like a lot of wholesalers who don't have money to close, then your broker may not want to sponsor you if you are going to contract on deals and not perform if you can flip the contract to someone that does. It also opens your brokerage to liability because what you are telling the seller is "sell it to me for X" and within 10-15-30 days you are going to sell it to someone else for Y and take the difference. Remember you have a fiduciary duty to the seller to put their interest above your own. So if it is worth Y or more, why didn't you just list it and sell it for that and let the seller take the profit vs you taking just your commission.
- Investor
- Austin, TX
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Nothing changes with your broker. Only thing I can think of is waiving your commission on some transactions to get the deal done
Have you talked with your broker? If not, I would suggest you do that. They may already have ideas on how they need/want to handle this, and then you need to decide if that will work for you or not. I'm not advocating jumping brokers, but there are a lot out there that may have better options for you as you look at making this transition.
Good luck!