Vallejo, CA · Member since 2019 · 13 posts · 18 votes
I've had my license coming up on 4 years and I'm debating if I should renew it or not. I'm not so confident in sales nor do I feel that I've given it my best shot either. It is pricey to keep up the license and I have to work to support it. What I've discovered is my interest for REI. Would my license benefit me or hurt me in REl?
Yes access to the MLS is great way to shop for deals but there are similar sites as well. Should I keep my license just to have this accomplishment when not exercising it? Or should I give it a go and maybe move location where I see that a market is thriving in inventory of homes? Your insight would be greatly appreciated it!
If you're not using your license and your interest has been redirected, why not place it on inactive status. In my state, "inactive" does not mean forever but it will give you time to pursue REI and save money on all the expenses that realtors/brokers incur just to be one. Inactive is a nice middle ground if you state supports that.
Because I believe in the Golden Rule, I only submit what I believe to be fair offers, and of course, that's subjective.
You know in your heart if you're treating someone fairly.
If I find that the property is priced at fair market value and I still can't get my numbers to work, I don't pursue that property because it's not a good deal. ;)
If the property is truly overpriced, then I have no problem submitting a fair market offer.
Good luck Kian, you'll do the right thing, don't worry!
If your state doesn't offer inactive, you might consider keeping the license active- but not paying for MLS access or IDX fees for listings. At least in my state, that would greatly reduce the annual expense of keeping a license active. I'm a big fan of always keeping your license.
Thank you so much for the encouraging words! Honestly I'm not sure if the offers I'd present would look fair to others since the properties I'm looking at involve financially distressed owners who do not have their properties listed. In my state (Texas) there are auctions for properties with delinquent taxes, which you can get for whatever is owed minimum (If no one bids against you). To me it's very fair for me to pay off peoples' delinquent taxes and give them cash on top, and even informing them that it isn't the only option. To others it might not seem fair. I'm thinking I could discuss with an attorney to get their opinion. Once again, thank you for helping me out Bevla!
As a Real estate investor I am in the same situation. Although I haven't used my license for any customer transactions in quite a few years, I decided to keep my license active, (while also working a full-time job for quick cash and medical benefits) for numerous reasons:
a) MLS Access
b) Access to NJAR, which provides me with all current documents: Lease applications, Residential Leases, Lead paint docs, etc.
c) If anyone wants to rent from me, they pay me a commission
d) If I buy or sell, I get a commission
e) If an occasional Listing should fall in my lap, I get a commission
f) the free educational courses, Lunch and Learn seminars, etc. are invaluable, and
g) I worked way too hard to get that license!
I still do real estate investing, which I love, while working a full time job, and keep my real estate license in Active Status.
If you don't want to renew, at least put your license into Referral Status.
I have my license mainly just for investing . I was using realtors and they wouldn’t show me the houses fast enough . It also saves me 3% when I’m buying or selling properties . Sometimes properties you invest in may not be the best purchase and you’ll want to sell . Or maybe if you sell one and went it up in value enough you can trade up for 2-4 properties instead of one .
I love having my license. I’ve Learn a lot about real estate with it .
I have my license because when I buy and sell my own properties I can make commission as an agent AND make money as a Seller. The MLS is a great source for finding properties for myself and my clients. I'd say keep your license active and do all you can with it - since you have yet to do all you can. I'm in San Diego. I thought it was expensive too until I changed my business model. Now that I'm making money, it's not expensive in my mind. It's just the cost of doing this business in CA. You'll spend more on Seller side realtor fees if you don't have your license when you go to sell your properties. I know a lot of investors that wish they had access to the MLS. Other services may have the information, but I've found that nine times out of 10 it's not as accurate.
For me PM work is just not my thing. Youc an make a living at it but really isn;t going to make you rich. Some will do PM work and put in clause that they eventually get the listing when it sells.
So it really is the ancillary benefits that become the payoff.
I have a friend also that owns 9 million sq ft of retail and manages 15 million sq ft. It basically keeps his employees working through the cycles. The money is made with lease renewals and new leases for commissions not really the PM fees. Another benefit is they know how the property operates so when the owner wants to sell they have first dibs or they can sell it and get paid that way.
With me I focus on 2 out of 4 items:
1. Property management - not me
2. Leasing commissions - not me
3. Brokering commercial transactions - me
4. Being a syndicator as a sponsor - me
I find 3 and 4 make me the most return per hour and I enjoy doing them. The other 2 I do not care for. Some people love that stuff but not me.
PS its astounds me how many people on this site want to wholesale houses and never talk of becoming a top producing commercial broker .. you put your time in on commercial brokerage build a clientele base your set for life.. just like what you have done.. I have not seen anyone on this site even ask you how to do it or how you did it.. they simply miss the message and where the real money is made ..
Just networking in that arena has such value.. to use a Cardone one can 10X it if they just move out of the low rent district
I think a lot of those people get here via YouTube and google. They see one of those guru ads about wholesaling and that inevitably leads to a BiggerPockets video. Next thing you know they’re on the forum. People working towards being a broker are too busy for the forums lol.
@Charleszett Deed My career in banking prevented me from being licensed. I could only invest and once I completed my first wholesale deal seven years ago I gave it up because of my career. I finally left banking this year on February 25 and received my license on April 12. You have to register and schedule to take the exam and the earliest date was three weeks out so I took it. I'm running my real estate business full-time now. I disclose my credentials to all of my prospects, but it feels great to offer them multiple options to solve their problem.
I'm glad you've decided to keep your license. I think it will benefit you as you grow your business as an investor.
I'm in CA. and was a broker from 2000 to 2008. Have not missed not having the license. The main reason I'd got the license originally was I wanted to learn about loans and financing, and like you, I wanted access to information. I think it depends on what type of investor you are. Agents provide a lot of information you can't get off the mls, although it is nice to have first hand access to the mls yourself and not be "blocked" by an agent. In my case I had a way to replace my income. On the other hand, if you are a born networker, maybe sales is easier for you than it was for me.
I think as long as you do what they say which is "disclose, disclose, disclose", you're fine. Around here they say if you are in doubt, then DISCLOSE! Business is business. If you aren't breaking laws or being unethical in your own mind, then you should be ok. It's OK to make a good business deal. You are actually helping the seller. Remember that and believe it.
Charleszett, I don’t believe you should give your license up. I don’t believe you have truly locked in on your intentions of Why you got your license.
Try to go back to when you were studying and try to remember Why you were studying. What was your vision for yourself at that time.
I believe that you can harness that memory to help drive you to your WHY.
I’ve been a realtor for 2 years myself and I am still working every day to improve and get better. I have considered putting my license in active, but it just doesn’t sit right in my gut.
I thought I was going to close a deal my first day getting my license.
Well I didn’t it took me 6 months and 2 years later I have closed 11 transactions total.
That is far short of my goals, but I will never quit until I achieve what I saw when I was up late at night studying just to get the license.
My Why.
Additionally, here is a strategy that may help and not require you to use all your resources to make money.
1)Contact the top wholesalers in that hot market you referred to.
2) ask to be put on their buyers list and ask if you can solicit their deals to your cash buyers and what is the best way to close a deal with them. Disclose to them that you are an agent and if you had the money you would buy these great deals, but for now you will just pass them to your friends with money bags.
3)Create a buyers list in that market. “Attend reia meetings in that area, and other real estate investing meet ups in that area. Post Craig’s list ads in that area. Etc
4) Close the deal. “ Joint Venture”
This is all just my advice. I hope something I said helps or made sense.
If you have aspirations to do much of anything in RE/REI I can't imagine why you would not keep it.
For example. I was able to use my position to leverage a better purchase of a property on the MLS this year, plus I have a tenant assigning me buyer's commission to cancel our lease agreement as she goes and buys new construction. These two things more than cover my cost of holding the license for the year.
It can open doors to opportunities if your moving in RE circles IMHO.
@Account Closed I concur with everything that was shared about why the license is worth keeping. Like you, I’m a licensed real estate agent, and have been for the past 9 years. During my first 8 years in real estate, I assisted investors part-time while managing a career full-time in corporate marketing.
What I’d like to add, though, is just a few things:
1. Exclusive Tools are valuable - There is a multitude of tools accessible to licensees that are proprietary to real estate agents. List generation from services that partner with MLS aren't as costly to agents as some of the fee-based services that investors pay for sourcing info for motivated sellers.
2. Shift your strategy to find your points of leverage - You’re primarily interested in keeping your license so that you can be an investor, and being an investor means networking with other investors. I mentioned that I have always worked with investors, and it’s actually what prepared me to become one.
In the past, my partnership with investors included taking the commission for the buy & sell as well as providing home staging services, for which I earned additional fees. I found my fit based on my interests, though I prioritize my own rehabs these days and no longer make time to work much on investment projects that aren’t my own.
There are ways to leverage relationships you build when networking with other investors, however. For instance, one agent that I associate with who work manages the rehab projects start to finish for investors who want to be hands off completely. Another that I associate with takes the buy and sell commissions plus serves as the interior designer of the rehab from start to finish. If nothing else, automate lists that you can pull and sell those, but whatever you do, I encourage you to find your fit. It’ll make having your license more fulfilling and more lucrative.
3. Don’t get caught in the hype - Remember what your objectives are. There will be lots of temptation to work with buyers or sellers that have little do to with your goals as an investor. Stay focused and you won’t waste time buying into the “you need to sell 10 houses this month” hype that a lot of traditional agents aim for. That’s not your target, so don’t get caught in the hype that it’ll help you reach your goals.
I switched from the traditional commission-based model to a flat fee model.
It made perfect sense for me because I never considered myself a traditional agent.
I'm a RE investor first.
So I didn't fit in at any of the brokerages I tried to work for.
They didn't know what to do with me because I'm also not a "sales" person.
I'm a promoter by nature and make my sales by promoting products I believe in and letting the products basically sell themselves.
I'm not aggressive, pushy or manipulative so "sales" have never been my thing.
I was also used to being creative with how I served people (I don't fit well in a box) and there really is NO room for creativity with a license, because the licensed world is heavily regulated and monitored.
You MUST follow the rules.
Plus, you technically work for a broker, so you're not really fully independent.
Luckily, I finally found a broker who allowed me to take the shackles off and gave me the freedom to create my own model and brand.
Before I got my license, I couldn't understand why I had to give up so much of my hard-earned equity to real estate agents when selling my properties!
After all, I was the one who took on the risk to make the equity and I always did most of the work to prepare the properties for sale, even to the point of hosting my own open houses.
The agents didn't deserve 6%-7% of the purchase price. Period.
So, now that i'm an agent, I charge a flat fee for full service and I love it! And so do my clients! ;)
I love knowing that I help people maximize their hard-earned equity that took, in some cases, years to build.
It's their equity, they deserve it.
The truth is, what I do as an agent is not that hard. I shouldn't get paid $15,000-$30,000 a listing for what I do.
And no agent is worth that, in my opinion. It's not rocket science.
When I made the switch it helped me stand out from the crowd.
Marketing became super easy.
And once people understand my model, it's a no-brainer for them to hire me!
My service sells itself.
And I love the type of clients I attract now! Mostly fellow investors who are my target market.
I actually love being an agent now, because seeing how much I can save my clients is where the joy is. ;)