How has being licensed to sell (or not) helped you?

Question

Hello BP readers, I wholesale but lately I'm considering the advantages of being a licensed broker, mainly in being in the know about off market deals and to grow my portfolio as am investor. I would do that part-time although I wonder if any of you would attribute your success in the RE investment world to having a license versus other non-licensed investors. All posts are greatly appreciated!

Regards,

Blanca

Regards,

Blanca

Ned Carey · Answer

There are many pros and cons of being an agent. I hated the real estate agent world. I am no longer an agent. Many others love being an agent.

@Russell Brazil and I are in the minority. Many suggest you absolutely should be an agent to wholesale. I think that is very BAD advice. Those giving it, I don't think have really thought through this very complex issue.

Russell Brazil · Answer

I am licensed. I operate in essence two separate businesses. The agent side of my business and the investing side of the business. However as a licensed individual, I would not be involved in wholesaling. That seems like it could get you in trouble with the real estate commission. The outcome of a wholesale seems too close to the concept of a net listing. Plus I can spend X dollers trying to whole sale one property....or I could spend the same X and probably get 3 listings out of it.

Blanca Wilson · Answer

@Russell Brazil @Ned Carey I see the potential conflict of interest now. I supposed that if I were to get a license I would have to operate very differently. Do you have any advice on what to avoid if I do get my license and say don't wholesale but flip instead?

Russell Brazil · Answer

One other thought I have about being licensed and an investor. As a licensed individual, I wont buy properties directly from an owner for myself. If I get too good of a deal, I run the risk later of the seller complaining to the real estate commission that they were taken advantage of.

For a similar reason, I also negotiate deals on the MLS very differently if I am buying them. If the agent on the other side of the deal is very experienced...then that is great...but if it is a part time agent, if I were working for a client, I would bully the part time or newer agent in negotiations. If I do that for myself, again, I run the risk of a real estate commission complaint.

The regulations that apply to licensed agents can also be a bit cumbersome I think if you are not actually working as an agent. I cant shoot for a bottom dollar amount, because my license, and the living it provides me is too valuable to risk to save an extra $10k when I am buying a property. And all it takes is that one complaint....even if you havnt done anything wrong, the second you get that complaint you really have lost...because you now have to worry about complaint #2, and once that happens there is a pattern, which ups your chances of disciplinary action.

How has being licensed to sell (or not) helped you?

How has being licensed to sell (or not) helped you?

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