I am very unsure of what to do in RE and I've got some questions and just want to see some real examples: 1.) If you're an agent how hard is it to disclose everything? 2.) If you're an agent how easy is it to get information on getting properties? 3.) If you have knowledge in investing, do you sell more to investors than future homeowners? 4.) What properties did you acquire due to being an agent? and how? 5.) I know these are a lot of questions but help a newbie out? thx so much!
See Andrew it is great to see your enthusiam. What I would recommend is joining your real estate investment club in your area. That is where you will find a lot of info and will be able to ask real questions and get the help that you need. This site is great, but you need to be around the environment.
I would also recommend reading some investment books and would not recommend learning true real estate investing from a REALTOR. Actually many of them do not know as much as you think that they do.
You are young and are headed in the right direction. Take it all in and learn and grow over time.
thanks mate, yeah i tried checking out some real estate groups around my area, but they all seem like all they want to do is market me. I've heard about nuevo riche, and i think one of the clubs here are them. I agree about REALTORS most likely not having an investor mindset. Ive been studying this for several months now, and im trying to get out of analysis paralysis. Thanks a lot for you input and your view.
Andrew, I have read other posts from you, and see this is something you are struggling with. I am an investor AND a Realtor. I am also a licensed contractor. Maybe I just like having important looking cards in my wallet, but I think each of these helps with my over-all real estate investing. I work in an office with over 250 agents. I agree that most of the agents do not understand investing. In fact, when I teach classes on how to be a better agent for investors, no one shows up! They donâ€™t care. They should be the ones that snatch up the best deals for themselves, but seem content to safely earn a commission selling these deals to someone else to make the big bucks and take the big risk. There are some who get this distinction, but most donâ€™t. It is really about being risk-averse. Selling real estate has very little risk, and a small reward. Buying real estate has a much larger risk, with a much larger potential reward. Real estate investing isnâ€™t for the weak of heart or the risk-averse personalities. So letâ€™s not confuse real estate agents who know a little about investing with investors who also have a real estate license.
As far as disclosures, this is so simply it isnâ€™t even a point worth discussing. You need to let all parties with whom you are entering into a contract know that you are an agent. Thatâ€™s it. When you talk to someone on the phone you say â€œby the way, I am a licensed real estate agent, just wanted to make sure you knew that.â€� When signing contracts you add a sentence that says something like â€œAndrew is a real estate agent and a party to the transactionâ€¦â€� You have also probably been told that agents have more liability than a non agent. What does that mean? If you donâ€™t have a real estate license you can act unethically and screw people without recourse? I donâ€™t see the disadvantage of having a license. Treat everyone fairly like you would want to be treated. Donâ€™t lie or deceive anyone for the sake of money. Be fair and honest. Do you need a real estate license to make you do business this way? I hope not.
I know a lot of very successful investor who are either agents or brokers. In California it is getting very helpful to have your license as access to the mls is so restricted now with safe keys. I can search for all of my own properties, call the agents for additional information and tips, write my own offers, and collect a commission when I buy and sell my own properties. So as an agent, access to the largest single data base of deals is right at my finger tips. This is vital as an investor in Southern California for the next number of years. Our deals are coming from REO auctions, and straight out of the MLS. In other market cycles, it may not be as necessary to have a license, as you are dealing with mailers and direct with homeowners where peopleÃ¢â¬â¢s negative perception of agent disclosure comes from. But right now it seems crucial to have direct access to the mls. I donÃ¢â¬â¢t have to rely on anyone else to search as long and hard as I want to for the next deal.
Maybe it is a perception thing? A used car salesman sells used cars. A Realtor sells used houses. I think you may be hung up on the idea of a â€œREALTOR.â€� You want to invest and do amazing transactions, but a realtor just seems like a salesman, right? You donâ€™t have to work in a big office and wear shirts and ties, and sit open houses and gather â€œleadsâ€� if you donâ€™t want to. Find a broker that will you â€œparkâ€™ your license if that is what you desire. That is the beauty about this business. You can work in your own home in your dirty shorts and favorite beer t-shirt if you want.
But as a Realtor, you can still search for property, do the thing you love, and get a pay check when you are in between deals. I buy houses for my own rehab and retail projects, and sell them to other investors and homeowners. I sell more to investors than homeowners simply because I search for the type on inventory investor are looking for. The average homeowner doesnâ€™t want a bank owned house that has had the copper stripped, poo in the dry toilet, and graffiti on all surfaces.
Feel free to pm me if you want more info on license requirements, brokers, real estate mentors, education etc. I like your enthusiasm and want you to make the decision that you feel is best for you based on what you really want. What works for some of us on here, may not be right for everyone.
Holy rambling lengthy response! Sorry guys!
Oh ****! so much value.. that should be an article. that was epic. thanks!
Andrew, I have been a Real Estate Investor for 5 years and a Realtor for 2 years. Before I was a Realtor I couldn't understand why alot of agents and investors don't get along.
First not all agents or investors are created equal. You will have people who are newbies and others that are experienced on both sides.
As an Agent I have had investors that wanted me to show them 20+ homes but they never wanted to buy a property. Some of these investors have been looking for years for their first deal.
Other new investors want to purchase houses with no money down and there isn't any money to pay the agents or closing costs.
Often agents are asked to take their commission back in the form of a promissory note and sometimes agents will do this after they have worked with the buyer on several deals but not the first few deals.
Many agents have gotten burned by taking their commissions in the form of a promissory note.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!