Agent for Investment Purposes?

Question

Hi all, I am currently taking an online pre-licensing class and I have a question about what exactly happens after I pass the state exam and what my options are. I have recently formed an investment company that will be purchasing several real estate holdings. I thought it would be a good move to get my license so that I can access the MLS, gain easier access to properties, and save on commission (or even make commission). I would prefer to spend minimal if any time having to field calls, attend meetings, etc. at the branch office of my broker because I want to be out searching for properties, managing investments, and raising funds. I do not really care about making commissions - I am more interested about the personal benefits that being a part of the local board may have in terms of my investment endeavors. Are there any brokerage firms that specialize in this type of thing or that would be beneficial for me to check out? Are no brokers going to want to sponsor me if these are my goals?

Steve Babiak · Answer

One licensed investor that I know hangs his license with a broker who specializes in property management; there is no real selling happening in this sort of real estate brokerage, so many of the things you mentioned that you want to avoid are thus avoided.

Ask around at your local REIA for people who are licensed and active investors, to see where they hang their license and what the requirements and expectations are from that broker.

Matt Mathews · Answer

Getting a license is a good thing!  My opinion!  However, to do what you want to do, you will need to find a Independent Broker, better yet, a one man band broker who will let you hang your license and  who is out of the same mold as you-meaning Investing, rather than listing prop. and selling.  OR!  Just find a agent who's only business is in working with Investors.  Either will be hard to find.  Did you know that on any given day, over 50K properties are up for sale that never get listed on the MLS?  We call them Pocket listings.  Investor clients get first look.  Find that Broker/Agent and you won't need a license.

J Scott · Answer

In the Material Relationship section of our contracts, we write:

"Agent holds 50% ownership of .   is the  of the property.  This constitutes Agent as Principal."

That said, we don't mention the fact that we are principals in the MLS listings; we wait until a buyer's agent calls us to show the house.

J Scott · Answer

Brandi -

It certainly doesn't eliminate all potential conflicts.  Because my wife owns 50% of our investment company, she is still a principal in every transaction we do, so she still has to disclose the information, both personally and in the contracts.

Now, I don't need to disclose when I'm speaking with someone, as I'm not technically representing the company at that point.  Or, if I made offers in my own name, I wouldn't have to disclose.

I've never found disclosure to be an issue, though.  In fact, it seems to give us credibility in the minds of non-investors when they know my wife is licensed.

For us, the main reason we had her get the license (instead of me) was just the simplicity of splitting up tasks.  She focuses on marketing/selling anyway.

Account Closed · Answer

There are a couple of post here on BP that deal with this question.  And a few investors here that have done exactly what your asking about.  I believe J Scott's wife did something like this to benefit their business, he's very active so he'll probably pop in on this.

Steve Babiak · Answer

Jason,

I occasionally see listings in my area that say "seller's _____ is a licensed agent", where you can fill in the blank with a variety of family member relationships (brother, husband, etc).  So do you do anything similar?

Brandi Paul · Answer

Hi J Scott-
                    
                    I am new and am I correct to believe that the fact that your wife has a license but it is hung in a separate company eliminates any possible conflicts in the transaction for all parties involved?  I have a my broker's license but seem to have found in most research that most investor's don't wear both hats so to speak when they do an investment deal.  I would love to be able to fully control a deal from all sides but wasn't sure how to make that happen.
                    
                    Thank you,
                    Brandi

E. Jacobs · Answer

Thanks for the reply,

any idea what I should search for to find what other people have said about the topic?

Account Closed · Answer

Most of the post titles are "Should I get a real estate license" or just search for real estate license should have plenty pop up that way.

Agent for Investment Purposes?

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