Hello all I'm interested in becoming a real estate investor. I'm in the socal area make a medium income and have money saved and invested. I recently wanted to obtain my Real estate licence and started the process ( I have my certifications) but after some more research I decided it was not in my best interest. I recently had a conversation with a realtor friend of mine about buying a property after taking a bit I realized he gave me pie in the sky numbers with nothing really backing them up... All in the name of closing a deal.
I'm a first timer and I think I'm gona need a lot of hand holding and proving in order to even consider submitting bids. I like doing my own research and I suspect this will be a long process before I'm able to close on a deal. A buyers realtor I'll dealing with will eventually become impatient especially if they have no prior investing experience and I go through the pre-approval process which is only good for 90 days, I'm willing to bet he wants to close on a deal within that time frame and will do whatever it takes to close the deal, justified by time spent getting to that point...
I think getting my own real estate licence will allow me to have a better understanding and control of the deal I'm buying into without outside influence and limiting other people involved... after all everyone thinks there time is worth something and return is expected from a client.. I know there are holding cost associated with obtaining a licence but with how expensive houses are in socal and elsewhere in the state, I really don't think someone else involved that is not whole hearty interested in real estate investing will help me all that much but with paper work.. I think I'm eventually going to find a deal that I like after really studying particular markets and looking for opportunities... speed, consistency and perseverance may also be factors in Fact, a lot of the deals I have seen posted on BP in recent times out of southern California have been made based on listing information errors made by the seller agent on the MLS or closing quickly because the seller wanted to move on and probably was in the property for a very long time.. Will getting my licence in real estate allow me to have better control of what I desire besides a good deal? quickly submitting and resubmitting bids, doing my own research, eliminating dragging and calling other people to view properties , eliminating deal closing rhetoric.... are those things worth it??
Getting your real estate license will save you time and money.
1. You'll be able to submit offers on your own and you can submit as many as you want.
2. You'll be able to save costs when selling your flip projects. Which will help you pay more for the projects you're buying because you now have that cost saved in your project.
@Antoine Martel Hey thanks a lot. I have been battling this thought for a couple days and have talking to a few people that don't really have any experience in the industry other then sales.. The broker I had planned on hanging my licence with is a sales intensive guy and intensives have new recruits to work under your "Team" I don't really have a desire to go out of my way to sell houses or recruit new members. I view the licence more like a resource for me to use...
@Simon Ruiz , the only possible downside to being licensed seems to be that you have to disclose you are a licensed real estate agents in any transaction you conduct. But I've also heard people say that this isn't really a downside and can actually be a benefit as people might view you more as a professional.
There are on going costs to getting licensed but with prices so high in SoCal, commission on one deal should pay for multiple years of fees.
There seem to be several brokerages especially now that are the 100% commission route. These seem like they might make more sense for investors that don't want to work full time as a real estate salesperson.
There is one called Real that looks interesting..it's a virtual brokerage with no offices...they are very technology focused it seems ..all docs handled via App. It's not 100% I think it's a small monthly fee and .. 85/15 split ..and then after a certain amount in commissions for the year it goes to 100%
They also say they have training and support.
First off, welcome to BP. There are advantages and disadvantages that come with having your license. There is more responsibility, and disclosure if you are licensed. Having a license does allow you to get the commissions on listing or selling of your properties, which does come in handy. Though there are offices that offer 100% commission, I'm not sure that is the best route for you with no experience. Real estate offers, and sales agreements are contracts, and people need to understand what is in them, and the process involved, etc. If you don't, then you might be better off not getting your license or finding a broker that you can work under and learn.
Also, depending on the type of property you are marketing, there may be more to marketing it than putting it on MLS. If it's a high end property, many of the larger brokerages have fine tuned marketing systems that expose your properties to global buyers, etc.
Many of the offices in southern CA won't take offers from an agent that isn't in their MLS. Why? I have no clue.
As to your other questions, southern CA is a huge market with many local markets within it. It's important for you to get up to speed on the market you want to work, and get to KNOW values, etc. Look at the size of homes, age, neighborhoods, lot sizes, finishes, etc. Go to Open Houses and snoop around. Everything varies from city to city in so cal. For us, we chose coastal Orange County and focused on Dana Point and San Clemente when we were there. We liked those areas. For you, it may be where you live, etc.
@Joseph M. Thank you for your insight I do think in cyclical and very competitive markets like Los Angeles , Any little bit of help can go a very long ways even being viewed more professionally.. I didn't know about Real Ill have to look into that when I get a chance...
@Karen Margrave If many offices won't take offers from an agent not in there MLS would that mean an agent would have to hire another agent just to submit a bid???
I'm an investor in SoCal and I do have my license. That being said, I RARELY use my license when acquiring a SFR Flip. I always give the listing agent the option to represent me as the buyer. And most of my properties come from trustee sales, off market, or wholesalers which no license is needed. When it comes to listing the flip on the backend, it never hurts to have the agent who brought you the deal sell it for you.
That being said, I'm glad I have it and it does come in handy. The extra disclosures needed aren't a big deal. If you want to be in real estate, I would suggest you get it, but I wouldn't expect to need it to buy fixers. \
PM me anytime if you have any more questions!
@Karen Margrave good point about contracts .
That's interesting that that many offices in SoCal won't take offers from agents not in their MLS .
So if one was an L.A based agent making an offer on an Orange County property they might not accept it ? Seems kind of crazy as long as the offer is strong .
But maybe there is some reason for this .
@Joseph M. I know I thought it was kind of strange too, and not sure why a seller would agree to such a thing. It's not on all of the listings, but there are various offices that put that on all their listings. It limits the agents working the listing, and I can't see any upside to it. I've never seen that before.
@Karen Margrave seems like it comes from some kind of scarcity mentality ? Like "we aren't going to let outsiders into our market ?"
Also noticed you are in Bend,Oregon now. I've heard it's really nice there. I'm guessing a big change from the O.C?
More opportunity there these days?
@Joseph M. Yes we are in Bend now. Available land to develop in O.C. for small builders is scarce, and usually way overpriced to make any sense. However; if an opportunity were to ever arise to return and do some deals there, we'd love to. Love the area, and the style of houses we were doing.
Up here in Bend there's such a variety of opportunities. In a subdivision you can have a multi million dollar home on the river, next door to a lot where there's a 5th wheel and large shop building. There's a lot of vacation rentals, as there's so many recreational opportunities. In downtown Bend there's historic homes, the Old Mill District and it's all so vibrant and fun.
@Karen Margrave , sounds nice. I totally see what you mean about limited availability of land. Similar situation to L.A of course. I've spent a lot of time and worked in Florida and it's kind of amazing seeing all the huge swaths of land that get cleared for development, since you don't see anything like that in Southern California.
I'll have to check out Bend someday to visit. Best of luck to you!
@Karen Margrave Is there a unique distinction between one and another MLS such as certain areas??? If so can this not be some form of discrimination from denied opportunity.... If I was a buyer it seems I would be forced to use a different agent... or have another agent involved all together it seems
@Simon Ruiz To be truthful I really haven't given it a lot of thought. I just have happened to see it on several different listings in southern California, where it said only offers from members of that specific MLS would be considered. I am sure it's probably something that could be challenged, as it's unfair to all involved. It didn't affect me, and wasn't my fight to fight.
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