Im back with a strategy adjustment. I am going to dedicate my next 3-4 months for wholesaling but I have had some vets tell me it may not work in my market but I could become a good agent for 6 figures as well. Can you describe a day in the life of an agent and maybe list some pros and cons to both? How long will it take to break into the agent game if I hustle?
@Cody Evans one of the biggest pros to being a realtor is that you can still wholesale! Wholesalers, however, cannot list property on MLS. I am always curious why people start by wholesaling, which is probably one of the hardest businesses to get into when they could start as an agent. I have closed almost 20 transactions this year here in the Chicago west suburbs, and I am only just now entering my third year as a realtor. Being an investor friendly realtor actually makes growing your business easier, as there are so few agents focused on investing. If you work hard, and work smart, you can definitely do well as a realtor.
@John Warren I'm a "wholesaler" but am not a realtor although I'd like to get my license. I spoke to a few brokers I know and they said wholesaling wouldn't be allowed due to conflict of interest. Maybe I just need to find investor friendly brokers!
That makes sense. Probably do need those investor friendly brokers.
How would you say the market is for wholesaling in California? What works and doesnt work?
It's very competitive obviously. Good deals are tough to find but they're out there. Direct mail and cold calling is what I've been doing. Looking for great deals on the MLS won't work!
@John Warren - My opinion would be to the contrary. If you are a realtor, you shouldn't wholesale. For the sake of newbies, this is how wholesaling works.
You put a property under contract for say $100,000, and you assign the contract to another buyer (most of the times its going to be an investor) for $110,000. You pocket the difference of $10,000. The seller only gets $100,000. The buyer pays your commission as he/she pays $110,000 You could technically pocket difference of $20,000 if you can find a buyer for $120,000 price.
As a realtor myself, I know it would be illegal for me to do in Virginia, as this is NET LISTING. The definition of NET LISTING is as follows: Definition. A listing based on the net price the seller will receive if the property is sold. Under a net listing the broker can offer the property for sale at the highest price obtainable to increase the commission. This type of listing is illegal in many states.
I am not against wholesaling per se, but can't say the same for some of the frequent posters on the site, who vehemently oppose it, and will continue to oppose it until their last breath...lol. However, I will say this, do one of the two. Be a wholesaler or be a realtor.
Just my 2 cents..
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing