I am a RE investor. I've come across more than a hand full of deals that I could have made money on if I were a RE Agent, I've decided its a good idea to go ahead and become a licensed agent. This way I don't have to lose money on all these deals I throw back into the pool. The broker who is going to sponsor me is a little leery of some of the marketing I use. Some of the letters I send out he thinks would cross some lines if I were a licensed realtor. Any one have any good thoughts on this?
Get used to operating with your habds tied. The system does not welcome new ideas.
Your broker is right. Having your license will have some limits to how creative you can get with your R.E investment business. I have my license as well and definitely enjoy the savings on the buy and sell sides.
Out of curiosity, how did not being an agent kill the deal?
@ mark - Im a wholesaler who purchases ugly houses for rehabbers and collects a fee. The deals that I lose money on are pretty houses. I work with rehabbers because they come with cash...quickly. Retail buyers rely on financing that may or may not happen. Get quirky about property inspections, etc. Thats how I lose money. If I were a realtor I could just list them. Its happened with 2 properties in the last 2 months that could easlily sell for 220K and 250K respectively. Thats a lot of cash to be leaving on the table just because I don't have a RE license.
Plenty of licensed agents invest and manage properties but it is a fine line you walk. Always disclose everything and if you are reselling right away, you might want to say you are buying to make a profit. That should safe guard you somewhat. You broker can help you there.
Your broker will probably expect you to produce income from sales so are you ready to make a transition? You will be wearing different hats, representing others interests while looking for personal profits. Sometimes what you gain you can again lose because sellers think that if you as an agent is buying, it must be a really good deal for you, and that means a bad deal for them.
A good agent can do well, good luck.
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