Investors getting Real Estate License to Purchase - Questions!!!

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Investors getting Real Estate License to Purchase - Questions!!!

Jim Goebel
Real Estate Investor · Des Moines, IA · Member since 2016 · 922 posts · 533 votes
  1. How does the technology work - can we just drop by and get access to a listing with eKey without calling or requesting a show time? What is the usual method? We typically buy distressed REO properties so they are vacant. I'm a little familiar with the 'request a time' technology because I FSBO'd a listing.
  2. If Rachel (wife) gets her license can I work as an agent assistant and get access to properties? What about putting in offers?  We are considering which of us is the better person/fit to get the license.
  3. How do we go about finding brokerages that would be in line with what we have to offer/etc? I'd assume some brokerages would be perfectly fine with having us under their wing if they got some % cut of the buyers' commission and don't have to do much of anything.  We did about $450k in purchase prices last year and closed on 6 properties.  Are geared up to continue/grow, too.  What is a fair/competitive offer for % of the buyers' commission that we'd share?
  4. If we disclose early on to a broker that we would like to start our own brokerage down the road would this be a positive/negative, or what?  What advantages would we have in doing this?
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Brandon SturgillBusiness Member
Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
9y

1. It depends. (what @Mindy Jensen said)

2. Unsure in your state, but the MLS's I am aware of are tightening restrictions on "assistants" using MLS...an unlicensed individual is not permitted the same liberties, like managing property, submitting offers, or showing properties...and violations may lead to loss of licensure...just be careful

3. What @Mindy Jensen said

4. Disclosure is not necessary...this is usually a pretty long and difficult road to qualify to sit for the broker exam...but guessing you will need to practice for a couple years before you can become a broker (this is state specific, though)

Good luck! @Jim Goebel

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  • Nick C.
    Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    9y

    It depends on the listing, sometimes houses are vacant and you can just show up, others are occupied and require an appointment. You will be able to read in each listing how access works. 

    Try to find a brokerage that offers a flat fee. The big brokerages will want to take a large % of your commission, but if you're only getting your license for access to properties it won't be worth it. Flat fee each transaction and no monthly fee is the way to go. Just look for a smaller brokerage. 

    There would be no advantage to telling a broker you want to start your own brokerage. It should be irrelevant, but it won't help in any way.

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  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    9y

    Hi @Jim Goebel . Welcome to BiggerPockets. Answering your questions:

    1. You will still have to call for showing instructions. A Go-and-Show means they give you the code but there isn't anyone to coordinate with. Some properties are still occupied and you'll have to wait for showing approval. It doesn't sound like that second part applies to you if you're purchasing mostly REOs.

    2. The Agent can make offers, the assistant cannot. The assistant can show properties unless the seller designates that only agents - not assistants - are allowed to show the properties. Again, it sounds like this second part would not apply. 

    3. Call around. Be honest with your intentions. There are plenty of brokerages out there that will allow you to hang your license under them while you invest. Offering a percentage of the sale will only sweeten the deal. 

    4. I probably would not divulge this information in the beginning of the relationship. Circumstances could change, there are different levels of insurance and education required for having your own brokerage and you may ultimately decide it isn't for you. I would wait until it was an actual thing. People leave brokerages all the time.  

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  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    9y

    1. It depends. (what @Mindy Jensen said)

    2. Unsure in your state, but the MLS's I am aware of are tightening restrictions on "assistants" using MLS...an unlicensed individual is not permitted the same liberties, like managing property, submitting offers, or showing properties...and violations may lead to loss of licensure...just be careful

    3. What @Mindy Jensen said

    4. Disclosure is not necessary...this is usually a pretty long and difficult road to qualify to sit for the broker exam...but guessing you will need to practice for a couple years before you can become a broker (this is state specific, though)

    Good luck! @Jim Goebel

    937-979-7000
    Realize Multifamily Group11 Review
    View Page
    1Reply
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